UC-NRLF 


200 


N  ME  MORI  AM 


JESSICA  PEIXOTTO 


RETAIL  SELLING  AND 
STORE  MANAGEMENT 


COMMERCIAL  EDUCATION  SERIES 

RETAIL  SELLING  AND 
STORE  MANAGEMENT 


PREPARED  IN  THE 

EXTENSION  DIVISION  OP 

THE  UNIVERSITY  OF  WISCONSIN 


BY 
PAUL  H.  NYSTROM,  PH.  D. 

ASSISTANT  PROFESSOR  OF  POLITICAL  ECONOMY 
THE   UNIVERSITY  OF  WISCONSIN 


NEW  YORK  AND  LONDON 
D.  APPLETON  AND  COMPANY 

1916 


COPYRIGHT,  1913,  BY 
THE  EXTENSION  DIVISION  OF  THE  UNIVERSITY  OF  WISCONSIN 


COPYRIGHT,  1914,  BY  D.  APPLETON  &  COMPANY 

GIFT 

//? 


Printed  in  the  United  States  of  America 


PREFACE 

One  of  the  most  important  occupations,  from  the  stand- 
point of  the  number  of  people  employed,  is  the  busi- 
ness of  retail  distribution.  Very  little  in  an  educational 
way  has  as  yet  been  done  in  this  country  for  the  peo- 
ple engaged  in  this  business.  It  is  true  that  a  compara- 
tively few  far-seeing  employers  have  for  many  years 
done  what  they  could  to  give  their  salespeople  train- 
ing with  the  purpose  of  increasing  their  efficiency;  and  of 
late  years  a  few  public  schools  and  some  private  schools 
have  offered  instruction  in  retail  selling.  For  the  most  part, 
however,  retail  salespeople  have  had  no  training  for  their 
work  except  what  they  acquired  through  experience;  and 
there  have  been  few  sources  of  information  for  the  retail 
merchant  who  wished  to  supplement  his  own  experience  by 
learning  of  the  experiences  of  others. 

Nevertheless,  the  business  of  retail  selling  is  one  that  de- 
mands for  successful  administration  a  wide  range  of  special 
knowledge.  This  special  knowledge  of  the  problems  of  the 
retail  store  and  of  the  better  methods  of  merchandising  can 
be  acquired  in  much  the  same  way  as  the  special  knowledge 
necessary  in  other  business  activities.  Some  of  it,  of  course, 
can  be  learned  only  from  experience,  but  much  of  it  can  be 
taught  and  learned  without  the  waste  of  time  and  money  that 
is  unavoidable  when  one's  own  experience  is  the  only  teacher. 
Surely,  wide  experience  is  essential  for  success  in  retailing 
as  in  anything  else,  but,  just  as  surely,  that  experience  can 

M141189 


PREFACE 

be  profitably  supplemented  by  a  study  of  the  experiences 
of  others,  arranged  in  logical,  orderly,  teachable  manner. 
With  the  purpose  of  bringing  together  the  experience  of 
many  men  in  retailing  and  of  arranging  this  material  in 
such  a  way  that  it  can  readily  be  studied  by  others  and  used 
by  them  in  their  daily  work,  the  preparation  of  this  text 
was  undertaken. 

The  text  attempts  to  treat  of  all  of  the  more  important 
activities  of  a  typical  retail  establishment.  Because  of  the 
number  of  these  activities  it  is  impossible  to  consider  all  of 
them  in  detail;  some  are  but  briefly  discussed.  The  purpose 
has  been  to  treat  fully  of  those  activities  with  which  sales- 
people are  closely  connected,  and  then  to  treat  in  less  detail 
of  the  other  activities,  of  which  salespeople  should  have 
some  knowledge  but  with  which  they  are  not  immediately 
concerned.  Some  subjects,  however,  have  been  given  ex- 
tended consideration,  that  are  ordinarily  thought  of  as  being 
of  interest  alone  to  the  store  manager  or  owner.  Detailed 
treatment  has  been  accorded  them  because  of  the  growing 
realization  that  selling  efficiency  depends  partly  on  the  sales- 
person's knowledge  of,  and  sympathy  with,  the  general  store 
policy,  and  because  wide  knowledge  of  the  business  is 
essential  for  the  employe  who  hopes  for  advancement  and 
success. 

The  text  should  be  of  interest  to  employers  and  employes 
alike.  Both  will  undoubtedly  find  in  it  much  that  is  already 
known  to  them,  but  it  is  hoped  that  they  will  also  find  much 
that  is  new  and  that  will  help  them  to  raise  retail  merchan- 
dising to  a  higher  level  of  efficiency  and  public  service. 

It  has  been  the  aim  throughout  to  present  only  such  poli- 
cies and  practices  as  have  been  found  of  actual  practical  value 
in  successful  stores.  To  this  end,  the  methods  of  a  great 
number  of  stores  have  been  drawn  upon  for  illustrations.  It 
is  to  these  stores,  large  and  small,  too  numerous  to  mention 
by  name,  that  the  writer  is  chiefly  indebted.  Many  helpful 

vi 


PREFACE 

suggestions  have  been  received  from  the  trade  periodicals, 
from  the  officials  of  wholesale  and  manufacturing  companies, 
and  especially  from  the  hundreds  of  students — salesmen  and 
saleswomen — in  the  writer's  classes  in  the  various  parts  of 
the  state  of  Wisconsin,  who  pursued  the  course  in  Retail 
Selling  offered  by  the  Extension  Division  of  The  University 
of  Wisconsin  during  the  years  1910,  1911,  and  1912,  while 
the  material  for  this  text  was  being  collected  and  prepared. 
Also  the  writer  wishes  to  express  his  deep  appreciation  for 
the  painstaking,  critical  reading  given  the  manuscript  and 
for  the  many  helpful  suggestions  offered  by  Professor  R.  S. 
Butler  of  The  University  of  Wisconsin. 

PAUL  H.  NEYSTROM 
The  University  of  Wisconsin, 
Madison,  Wisconsin. 


CONTENTS 

CHAPTER  VAGI 

I.    INTRODUCTION  TO  RETAIL  SELLING. ...  i 

Production   I 

Place  of  retailing  in  production I 

What  business  is  for 3 

Wrong  ideas  in  business 4 

Who  is  boss 4 

Literature  of  retailing   5 

Reasons  for  interest  in  retailing 6 

Problems  of  the  retailer 6 

Problem  of  the  untrained  salesman 7 

Apprenticeship  in  Europe   7 

Probable  solution  7 

Aim  of  business  is  profit 8 

Store  must  sell  goods 8 

Must  seek  new  and  hold  old  customers 8 

The  problem  of  retail  selling 9 

Factors  of  selling 9 

II.    THE   SALESMAN  II 

Reasons  for  salesmen  1 1 

To  educate  buyer 1 1 

To  make  sales 1 1 

To  increase  values 12 

Importance  of  the  salesman  12 

Born  vs.  trained  salesmen  12. 

Luck  in  salesmanship   12 

Health   13 

Rules  of  right  living 13 

ix 


CONTENTS 

PTER  PAGE 

Other  qualities 15 

General  education 15 

Business  education 16 

How  to  increase  your  education 16 

Character    18 

Present  demands 19 

Results  of  dishonesty   19 

Economy  of  living 20 

Be  on  time 21 

Watching  the  clock  22 

Initiative  22 

Ambition   22 

Self-confidence 23 

Determination  and  working  capacity 24 

Discipline    24 

III.  KNOWLEDGE  AS  AN  ASSET  IN  SELLING.  25 

Review    25 

Technical  knowledge  % 25 

Knowledge  of  the  goods 26 

Stock   26 

Prices 26 

Uses 27 

Qualities   27 

Analysis  of  knowledge  of  goods  28 

How  to  learn  the  goods  29 

Knowledge  of  the  house   30 

Knowledge  of  people 30 

False  methods  of  study   31 

Physiognomy   31 

Psychology  in  business  32 

IV.  THE  PSYCHOLOGY  OF  SELLING 33 

Psychology  and  business 33 

Definition  and  use  of  psychology 33 

The  mind  34 

The  brain 34 


CONTENTS 

CHAPTER  PAGE 

Roads  to  the  brain 34 

The  nervous  system  34 

Special  senses   34 

Structure  of  the  brain 35 

Sensation    35 

Brain  impression 35 

Experience  made  up  of  impressions  36 

Impressions  and  memory  36 

The  brain  a  record 36 

Brain  plasticity 37 

How  we  recall  37 

Conditions  of  good  memory  38 

Association  with  other  impressions 38 

How  to  improve  memory  39 

Remembering  names   39 

Science  of  memorizing 40 

Flights  and  stops  of  the  mind 40 

Mental  feeling 40 

Pleasure  and  interest   41 

Sense  of  being  right 41 

Expression   41 

Summary 42 

V.    HOW  INSTINCTS  AID  IN  SELLING  43 

Differences  in  individuals 43 

Instincts  the  bases  of  sameness 43 

What  instincts  are 43 

Possession 44 

Hunger  and  thirst  44 

Clothing  and  ornament 44 

Collecting    45 

Hunting 45 

Constructing 45 

Companionship 46 

Curiosity   46 

Imitation   46 

Individuality  47 

xi 


CONTENTS 


CHAPTER 

Miscellaneous  instincts   .....................  47 

Habit   .....................................  47 

Power  of  habit  ............................  48 

Habit  and  instinct   .........................  49 

Business  and  habits  ........................  49 

Imagination    ...............................  50 

Reasoning  .................................  51 

Deductive  reasoning  ........................  51 

Inductive  reasoning  ........................  51 

Summary  ..................................  52 

VI.    ATTRACTING  ATTENTION   ...............  55 

The  salesman's  service  .....................  55 

The  conduct  of  a  sale  .....................  56 

The  customer's  state  of  mind  ...............  57 

Getting  the  customer's  attention   ............  57 

Interest   .......................  .  ...........  58 

Increasing  interest  .........................  58 

Desire  and  action  ..........................  59 

The  steps  in  a  sale  ........................  59 

Practical  illustrations    ......................  60 

Advertising  ................................  60 

Window  display   ...........................  61 

Store  display  ..............................  61 

Advertising  an  aid  to  selling  ...............  62 

How  to  get  attention  ......................  62 

Salesman's  appearance  ......................  62 

Cleanliness    ................................  63 

What  customers  do  not  like  ................  63 

Unfavorable  attention  ......................  64 

Business  harmony   .........................  64 

Dress   .....................................  64 

Voice  and  speech  ..........................  65 

Instinctive  attention  ........................  66 

The  salesman's  approach  ...................  66 

Salesman's  manner  .........................  66 

Salesman's  eyes  .  ...........................  66 

xii 


CONTENTS 

CHAPTER  PAGE 

Forms  of  address  67 

Know  the  names  of  customers   68 

What  to  do  next  68 

Giving  directions   68 

Suggestion  in  getting  attention  69 

Transferring  attention 69 

The  salesman's  guides 69 

Non-attentive  customers 70 

VII.    AROUSING     INTEREST,     DESIRE,     AND 

DETERMINATION  71 

Getting  customers  interested 71 

Methods 71 

Tact  72 

Get  customer  to  say  "yes" 72 

Anticipate  objections 73 

Frankness  73 

Influence  of  knowledge   74 

Fixing  the  attention   k 74 

Humor  not  permissible 75 

Illustration   75 

Impressions 77 

Naming  price 78 

Patience  with  customers 78 

Turning  over  the  customer 79 

Psychology  of  interest  79 

VIII.    CLOSING  THE  SALE  81 

The  close  of  the  sale  an  act  of  will 81 

Varying  strength  of  the  will  81 

Some  decision  upon  every  idea 82 

How  people  decide 82 

The  impulsive  type  83 

The  reasonable  type   83 

"Suggestion"  vs.  "Reason  why" 84 

Power  of  suggestion 85 

Practical  use  of  suggestion 89 

The  purpose  of  decision 89 

xiii 


CONTENTS 

PTEK  PAGE 

Ideas  appealing  to  instincts  are  strongest 89 

After  the  demonstration 90 

Treatment  of  indecision  90 

Meeting  objections  90 

The  psychological  moment  for  the  close 92 

Managing  the  close  of  the  sale 92 

IX.    SPECIAL  PROBLEMS  IN  RETAIL  SALES- 
MANSHIP       95 

Differences  in  selling  ability 95 

Personality  of  the  salesman 95 

What  is  personality 95 

Personality  in  selling  96 

Tact  96 

Enthusiasm  96 

Sane  enthusiasm 97 

Faith    97 

Bluffing 97 

Manner  of  speaking  98 

Know  customers'  names 98 

Sell  the  most  profitable  goods  98 

Do  not  show  what  will  not  fit 99 

Handle  goods  appreciatively 99 

Customers  first  99 

Meet  the  customer  promptly  99 

No  favoritism  99 

Answer  questions  frankly  100 

Contrary  customers  100 

Be  obliging   101 

Attend  closely  to  customer 101 

Customers'  complaints 102 

Profit  by  complaints   102 

Should  a  retail  clerk  try  to  sell  anything? 102 

Service  to  customers  103 

Progress  in  standard  of  living  due  to  salesmen  103 

Service  to  employer  103 

Find  out  cause  of  failures 104 

xiv 


CONTENTS 

CHAPTER  PACK 

Leave  customers  with  friendly  feeling 104 

The  store  is  not  a  loitering  place 104 

X.    LEAKS  AND  LOSSES  IN  RETAIL  STORES  106 

Retail  store  leaks 106 

Fire    107 

Stealing  no 

Over-measurement   in 

Poor  care  of  merchandise  112 

Poor  packing 112 

Waste  of  supplies   112 

Unsalable  stock 113 

Waste  of  light  113 

Leaky  packages 113 

Vermin    113 

Losses  due  to  delivery  department  114 

Care  of  delivery  equipment   114 

Salesmen's  errors  115 

Waste  of  time 115 

Waste  of  labor 116 

Sales  that  do  not  stick 116 

Ignorance  of  stock 1 16 

Customers  who  do  not  come  back 116 

XL    WINDOW   DISPLAY  AND   OTHER  AIDS 

IN  SELLING 118 

Helps  for  the  salesman  118 

Two  important  principles 1 18 

Importance  of  manner  of  selling  119 

The  application  of  psychology  119 

The  salesman  and  his  interests 119 

Art  in  business 120 

Principles  of  art  121 

Harmony 121 

Order  121 

Meaning    122 

Lines   124 

xv 


CONTENTS 

CHAPTER  PACK 

Surfaces   124 

Masses  125 

Balance   125 

Effect  of  colors   126 

Color  harmony   127 

Optical  illusion  127 

Effective  display  and  store  helps  127 

The  store's  location 129 

The  store  exterior  130 

The  window 130 

Purpose  of  window  display 131 

Attracting  attention  132 

What  constitutes  good  display   132 

The  entrance  133 

Arrangement  of  departments   133 

Interior  appearance  134 

Show  the  goods  135 

Show  cards 135 

Other  aids  to  selling 136 

XII.    RELATION  OF  THE  SALESMAN  TO  HIS 

EMPLOYER  AND  TO  THE  PUBLIC...  139 

The  salesman  a  representative  of  his  house..  139 

The  salesman's  services  to  his  employer 139 

Do  your  best  for  your  own  sake 140 

Co-operation 140 

Store  rules  140 

Not  hard  to  get  into  high  class  of  salesmen. .  143 

How  to  improve  in  salesmanship  143 

Poorly  paid  salesmen  may  cost  employer  more 

than  good  salesmen  144 

Relations  to  community  144 

Salesmen  and  politics  144 

Be  true  salesmen  145 

Keep  yourself  strong  145 

Fight  blue  days   145 

Optimism ,.,....  146! 

xvi 


CONTENTS 

HAPTER  PAGE 

XIII.  EFFICIENCY  AND  STORE  ORGANIZATION  148 

New  lines  of  business  opportunity   148 

Intensive  management 149 

Recent  interest  in  scientific  management 149 

Scientific  management  in  retailing  150 

Efficiency  engineers 150 

Scientific  study  of  a  concern  151 

Analysis  of  a  retail  store  151 

Retail  store  organization   152 

Duties  of  each  department 154 

The  general  manager  154 

Merchandise  manager  155 

Buyers    155 

Assistant  buyers  157 

The  alteration  department 157 

Factory  system  in  alteration  department 158 

The  salespeople 158 

City  shoppers 158 

The  advertising  department 158 

The  store  superintendent 160 

Floor  managers 161 

Stenographers   162 

The  records  department  162 

Statistics  and  records   165 

The  records  manager  165 

Store  conferences 165 

General  inspiration  meetings 166 

XIV.  STANDARDS  OF   EFFICIENCY  IN  A  RE- 

TAIL STORE   167 

Standards  in  business 167 

Standards  of  construction   168 

Floor   168 

Stairways    169 

Fixtures 169 

Heat 169 

Light   170 

xvii 


CONTENTS 

CHAPTER  PACK 

Air  170 

Cleaning   170 

Score  card  for  stores  171 

Standards  in  buying  and  receiving  goods 172 

Standards  for  salesmen   173 

Kinds  of  sales 173 

Average  time  per  sale   175 

Standard  conditions  for  employes 175 

Store  service  to  employes  to  improve  selling. . .  176 

Education  for  efficiency  178 

Practical  training  in  selling  routine  179 

Practical  education  in  theory 180 

Judging  salesmen  180 

Use  of  the  score  card  for  salesmen 182 

XV.    STORE  POLICY 184 

Importance  of  store  policy  184 

Weakness  of  "get  all  you  can"  184 

Sell  at  fair  profit   185 

"Sell  as  cheaply  as  you  can"  185 

Quality  of  goods   186 

Trade-marked  and  nationally  advertised  goods.  186 

One  price  to  all  190 

Getting  new  business 191 

Meeting  competition   192 

Business  courtesy 192 

Store  democracy 193 

Treatment  of  customers  who  do  not  buy 194 

Telephone  courtesy   194 

The  answer  at  the  telephone 195 

Suit  the  individual  customer 196 

Treatment  of  brides   196 

Treatment  of  children   197 

Another  class  to  reach 197 

Treatment  of  complaints  197 

Treatment  of  angry  customers 199 

General  store  service   200 

xviii 


CONTENTS 


CHAPTER 


PAGE 


Special  store  service 201 

Delivery  service 201 

XVI.    THE  COST  OF  SELLING 203 

Interest  in  cost  accounting  203 

What  is  profit 204 

Economic  profit 204 

How  profits  are  computed 205 

How  to  take  the  inventory  205 

The  turn-over  208 

How  is  turn-over  determined  ? 209 

The  expenses  of  selling 210 

How  much  should  expense  be  ?  213 

Mark-downs  213 

Compute  profits  and  expenses  on  sales 214 

Marking  the  prices   217 

The  right  way 217 

The  wrong  way 218 

Loss  caused  by  the  wrong  method 219 

Another  example   219 

Compute  profits  and  expenses  on  the  same  base  220 

Retail  profits   220 

Discounts  for  cash 221 

Dating  222 

Selling  price  not  based  alone  on  costs  of  selling  222 

XVII.    BUYING  FOR  A  RETAIL  STORE   224 

Importance  of  good  buying  224 

Where   to  buy    224 

Buy  in  few  places  225 

Method  of  buying   226 

Bargain  hunters   227 

Buy  little  and  buy  often  227 

Exclusive  lines  228 

The  buyer's  qualifications    229 

Buyer's  knowledge  229 

Knowledge  of  the  goods  230 

xix 


CONTENTS 

CHAPTER  PACB 

How  to  get  this  knowledge 231 

What  to  buy  231 

How  much  to  buy  233 

Other  problems  of  the  buyer  236 

Stock  up-keep   238 

Slow  moving  goods  238 

Treatment  of  traveling  salesmen 239 

Pricing  the  goods   239 

XVIII.     RETAIL  ADVERTISING  241 

Kinds  of  retail  advertising   241 

Aim  of  advertising   242 

Store  news  243 

When  to  advertise 243 

Advertising  mediums 243 

Requisites  for  good  advertising 244 

Tell  the  truth 244 

Descriptions    245 

Heading 245 

Illustrations    246 

Prices 246 

Requisites  of  good  form 246 

Location    247 

Emphasis 247 

Ornament   247 

Art  in  advertising   248 

Getting  the  information  248 

Preparation  of  copy   249 

The  sale  250 

The  results 250 

Store  co-operation  251 

The  advertising  profession   252 

XIX.    RETAIL  CREDITS  AND  COLLECTIONS...  253 

Is  retail  credit  necessary?   253 

Inevitable  loss   254 

Credit  a  cause  of  recklessness  254 

xx 


CONTENTS 

PAGE 

Arguments  for  retail  credits  255 

Credit  until  pay  day  255 

Credit  business  pays  255 

Credit  makes  good  customers 256 

Substitutes  for  credit  256 

Practical  necessity  for  credit  256 

Essentials  of  successful  credit  business 257 

Relation  of  business  conditions  to  credit 

granting  257 

Classes  that  may  receive  credit  258 

Who  should  not  receive  credit  259 

The  credit  man's  problems  260 

How  bad  debts  arise  260 

The  work  of  the  credit  man 261 

Method  of  handling  the  credit  customer 261 

Getting  credit  information  from  customer 262 

Verification 262 

Thorough  investigation 263 

What  the  credit  man  should  know  about  his 

risks  263 

Credit  records  264 

Relation  of  credit  to  prosperity  264 

XX.    RELATION  OF  THE  STORE  TO  ITS  SALES- 
PEOPLE AND  TO  THE  PUBLIC 266 

Relation  to  employes 266 

Minimum  salary  266 

Child  workers  267 

What  should  determine  salary  ? 267 

Premiums   268 

Profit-sharing 269 

Special  forms  of  profit-sharing 270 

Selling  goods  to  salesmen  271 

Security  of  employment  272 

Promotions    272 

Value  of  departmentizing 272 

Every  manager  should  have  an  under-study. . .  273 

xxi 


CONTENTS 


Salesmen's  suggestions  273 

Welfare  work  274 

Hours  of  labor  275 

Education  of  salespeople  275 

The  buyer  as  a  teacher 276 

Store  conferences 276 

The  trade  papers   277 

Relations  of  merchant  to  society  278 


RETAIL  SELLING  AND 
STORE  MANAGEMENT 


RETAIL  SELLING  AND  STORE 

MANAGEMENT 

CHAPTER   I 
INTRODUCTION  TO  RETAIL  SELLING 

Production. — To  supply  the  wants  of  people  there  has 
been  built  up  a  great  system  of  industry  and  commerce. 
The  average  family  draws  its  foods,  its  clothing,  and  other 
needs  from  all  parts  of  the  earth.  From  producer  to  con- 
sumer there  is  in  most  cases  an  intricate  series  of  trans- 
formations and  exchanges.  There  is  first  the  production  of 
the  raw  material  by  the  laborers  who  work  next  to  the  soil, 
from  which  all  material  things  originally  come.  Then  there 
is  the  transportation  to  the  factories,  and  the  manufacturing 
that  changes  the  form  of  the  raw  product  to  something  suit- 
able to  human  use.  After  manufacture  the  goods  are 
usually  transported  again  to  large  dealers  who  purchase  in 
large  amounts  and  distribute  in  wholesale  lots  to  the  smaller 
dealers.  Finally,  the  goods  reach  the  consumers.  This 
great  system  of  industry  and  commerce  is  called  economic 
production. 

Place  of  retailing  in  production.— The  business  of  retail 
selling  is  the  final  link  in  this  great  chain  extending  from 
producer  to  consumer.  To  show  its  relation  to  the  whole 
system  of  production  and  commercial  distribution,  we  may 
follow  the  processes  of  an  article  from  its  beginnings  to  its 
ultimate  uses.  (See  Plate  I.)  In  the  production  of  an  or- 
dinary piece  of  calico  there  are,  as  indicated  in  the  chart, 
more  than  twenty-five  steps.  There  are  often  many  more. 
The  chart  shows  a  simplified  condition.  It  will  be  seen  that 


INTRODUCTION   TO   RETAIL   SELLING 

a  piece  of  cotton  goods  must  pass  through  a  great  number  of 
hands,  must  travel  over  long  distances,  must  be  worked  by 
machinery  requiring  much  capital  for  its  purchase  and  op- 
eration, and  must  be  subjected  to  many  processes  that  have 
scientific  bases  in  physics,  chemistry,  etc.  What  is  true  for 
a  piece  of  cotton  goods  is  true  in  a  similar  manner  for  almost 
every  other  article  bought  and  sold  for  the  use  of  man. 

What  business  is  for. — Wherever  goods  change  hands 
from  one  owner  to  another,  there  buying  and  selling  take 
place.  It  is  at  these  points  that  the  profits  are  determined ; 
and  in  profits  we  shall  find  one  of  the  main  motives  of 
present  day  enterprise.  The  possibility  of  profits  brings 
about  investments  in  the  various  links  of  the  chain;  and, 
when  profits  cease,  the  units  decrease  in  number  or  one 
link  disappears  entirely. 

As  a  whole,  this  great  industrial  and  commercial  system 
depends  for  its  existence  upon  the  demands  of  the  people, 
and  therefore  it  is  a  social  institution.  The  individual  unit, 
be  it  farming,  mining,  manufacturing,  wholesaling,  or  re- 
tailing, depends  for  its  success  upon  how  well  it  fits  into  the 
great  system,  and  how  well  it  serves  its  immediate  com- 
munity of  customers.  The  unsuccessful  store  or  factory  is 
one  which  is  not  located  advantageously  with  reference  to 
its  markets,  or  one  which  adopts  a  policy  at  variance  with 
the  tendencies  in  the  entire  system,  or  which  does  not  serve 
its  customers  in  the  way  that  they  want  to  be  served.  So- 
ciety notifies  such  a  unit  that  it  is  on  the  wrong  road  by 
cutting  down  its  custom  and  thereby  cutting  down  its  profits. 

Attempts  to  thwart  this  scheme  or  natural  order  may 
thrive  for  a  while,  but  in  the  long  run  the  people,  for  whom 
this  whole  system  of  distribution  exists,  will  eliminate  the 
combination  which  holds  price  much  above  the  costs  of  pro- 
duction and  handling;  will  break  the  monopoly  controlling 
any  needed  commodity ;  will  in  some  cases  find  a  substitute 
article  leaving  the  monopoly  with  no  income ;  will  cease  to 


RETAIL    SELLING   AND    STORE    MANAGEMENT 

trade  with  the  merchant  whose  advertising  or  goods  are  dis- 
honest; and  will  buy  as  little  as  possible  from  the  salesman 
who  does  not  treat  his  customers  humanly  or  who  does  not 
serve  them  as  they  want  to  be  served. 

Wrong  ideas  in  business. — There  is  a  great  deal  of  mis- 
conception in  the  minds  of  many  salesmen,  even  merchants 
themselves,  concerning  the  social  function  of  selling.  It 
seems  to  be  easy  to  forget  the  dependence  of  the  individual 
business  upon  the  public.  Such  avowed  policies  as  "get  all 
you  can,"  "charging  all  the  traffic  will  bear,"  etc.,  are  wrong 
both  in  principle  and  in  practice.  As  the  public  becomes 
better  and  better  educated  and  observant  of  its  interests, 
indirectly  as  well  as  directly,  the  policy  of  caveat  emptor 
(let  the  buyer  beware)  becomes  more  and  more  a  thing  of 
the  past.  Still  there  are  too  many  business  men  who  think 
in  terms  of  the  policies  of  the  past,  and  this  may  be  proved 
by  the  commonness  of  such  expressive  and  significant  busi- 
ness slang  as  the  following  phrases: 

"Put  it  over." 

"Lead  'em  to  it." 

"Made  'em  eat  out  of  my  hand." 

"I  gave  him  the  hook  all  right." 

"They  were  regular  boobs." 

"We  certainly  handed  him  one." 

"Just  like  taking  candy  from  a  child." 

"Easy  money." 

"He  took  hook,  bait,  and  all." 

Business  men  who  use  these  expressions  and  really  think  as 
they  speak  are  bidding  for  uncertain  immediate  success  and 
certain  ultimate  failure.  It  must  never  be  forgotten  that 
business  is  intended  to  serve  the  people  and  that  the  people 
are  not  to  serve  business. 

Who  is  boss. — In  the  Jordan  Marsh  Company's  school  of 
salesmanship  in  Boston  the  relation  of  the  store  to  the  public 
is  made  clear  by  Superintendent  Hawkins  in  the  following 


INTRODUCTION   TO  RETAIL   SELLING 

manner.  At  the  close  of  each  term  or  course  he  goes  before 
his  class.  Let  him  tell  in  his  own  words  what  he  says  and 
does: 

"  'As  you  are  about  to  enter  the  employ  of  the  Jordan 
Marsh  Company,  there  is  one  very  important  thing  that  you 
should  know;  and  that  is,  who  is  the  boss  in  this  store? 
Now  who  is  the  boss  ?'  I  ask,  pointing  to  some  eager  student. 
The  answer  usually  comes  back,  'Why,  you  are.'  I  reply 
with  emphasis,  'Oh,  no;  I'm  not  the  boss/  Again  I  ask, 
'Now,  who  is  the  real  boss  in  this  store  ?'  All  are  intensely 
interested  now.  Positive  voices  in  chorus  now  proclaim  a 
member  of  the  firm  to  be  the  real  boss.  I  say  again,  'Oh, 
no.  He  is  not  the  boss.  The  boss  in  this  store  is  the  cus- 
tomer. It's  for  customers  that  you  and  I  are  working.  It's 
the  customer  that  you  and  I  are  here  to  please.  It's  the 
customer  who  pays  your  wages  and  mine.  If  it  were  not  for 
the  customer,  you  and  I  would  be  looking  for  a  job,  and 
we  might  not  get  as  good  a  one  as  we  have  here.  Now,  if 
you  are  sitting  behind  your  counter,  doing  nothing,  and  see 
me  coming,  don't  jump;  but  if  you  see  the  customer,  the 
boss,  coming,  jump !' ': 

Mr.  Hawkins  says  that  this  line  of  argument  always  makes 
a  strong  impression,  and  it  strikes  the  keynote  of  good  sales- 
manship ;  namely,  satisfactory  service  to  customers. 

Literature  of  retailing. — It  is  somewhat  surprising  that 
so  little  scientific  attention  has  been  given  to  the  retail  busi- 
ness in  the  past.  Agriculture  has  become  almost  an  exact 
science,  and  the  engineer  and  economist  have  advanced  min- 
ing, manufacturing,  and  transportation  to  well-defined  stand- 
ards. But  the  retail  business,  which  now  employs  the  time 
and  energy  of  nearly  a  million  people  in  this  country  alone, 
has  been  passed  over  in  the  standard  works  on  economics 
with  but  brief  mention.  In  a  similar  way  the  art  of  selling 
and  other  arts  of  the  retail  business,  including  advertising, 
window-trimming,  stock-keeping,  etc.,  have  until  recently 


RETAIL    SELLING   AND    STORE    MANAGEMENT 

received  but  little  attention  from  writers.  This  condition 
bids  fair  to  be  changed  very  rapidly  now.  A  flood  of  litera- 
ture is  appearing  on  every  conceivable  phase  of  the  business. 

Reasons  for  interest  in  retailing. — There  is  a  reason  for 
this  enlarged  present  interest  in  the  retail  business.  This 
country  has  just  entered  a  new  era  which  at  present  finds 
its  principal  expression  in  the  watchword  of  efficiency.  The 
era  of  extensive  exploitation  has  just  passed.  Henceforth 
resources  of  all  kinds  must  be  conserved,  capital  invested 
more  carefully,  labor  more  efficiently  done.  Scientific  man- 
agement is  being  introduced  into  the  industrial  field,  and  the 
essence  of  scientific  management  is  elimination  of  wastes 
in  the  cost  of  production.  The  hero  of  this  period  is  the  one 
who  can  "make  two  blades  of  grass  grow  where  only  one 
grew  before";  and  the  essence  of  good  salesmanship  is  to 
make  two  sales  where  only  one  was  made  before.  It  is  only 
natural  that  this  tendency  should  appear  in  the  retail  field, 
and  that  men  should  seek  to  apply  to  retail  selling  some  of 
the  principles  which  are  working  so  successfully  in  other 
fields. 

Problems  of  the  retailer. — There  is  another  reason  for 
this  study  of  retailing,  and  that  is  the  growth  of  a  number 
of  special  problems  into  such  dimensions  as  to  compel  at- 
tention. All  middlemen  are  facing  a  very  real  problem 
in  the  competition  among  themselves,  competition  with  mail- 
order houses,  and  competition  with  the  various  "direct  to 
consumer"  movements  introduced  here  and  there  by  pro- 
ducers. The  rising  prices  of  the  last  two  decades,  due  to  the 
increased  cost  of  raw  materials,  have  added  to  the  difficulty. 
In  many  cases,  it  has  been  difficult  to  shift  the  entire  increase 
upon  the  consumer ;  hence  the  scale  of  net  profits  has  had  a 
tendency  to  fall  all  along  the  line.  Changes  in  the  character 
of  trade,  the  increased  demands  of  the  public  for  greater 
varieties  and  increased  service,  the  prevalence  of  fashion, 
fad,  and  craze,  make  the  dealer's  position  one  that  requires 


INTRODUCTION   TO   RETAIL   SELLING 

the  exercise  of  the  keenest  faculties  and  the  most  advanced 
knowledge. 

Problem  of  the  untrained  salesman. — There  is  another 
factor  in  the  retailer's  problem  in  this  country,  and  that  is 
the  lack  of  highly  trained  salesmen.  This  is  a  condition 
for  which  no  one  in  particular  is  at  fault,  but  which  de- 
mands a  remedy.  The  need  for  trained  salesmen  was  not 
keenly  felt  in  the  past  when  the  small  store  was  the  rule, 
and  when  the  proprietor  was  the  chief  salesman.  The 
problem  of  selling  did  not  exist.  If  a  salesman  were  not 
skilled  in  selling,  neither  was  the  salesman  in  the  competi- 
tor's store;  so  it  made  no  difference.  Besides,  under  the 
supervision  of  his  employer,  the  salesman  frequently  gained 
indirectly  a  very  fair  education  in  salesmanship  in  practice. 
In  the  modern  store — large,  departmentized,  mechanical — 
the  supervision  that  educates  in  many  cases  has  been  lost. 
The  chief  has  retired  behind  glass  doors.  The  inspiration 
of  example  is  often  wanting. 

Apprenticeship  in  Europe. — In  Europe  the  problem  of 
training  salesmen  has  been  met  very  generally  by  an  effective 
apprenticeship  system.  The  boy  desiring  to  become  a  sales- 
man goes  to  work  for  a  merchant  for  a  period  of  three  or 
four  years,  the  merchant  agreeing  to  train  him  carefully. 
During  this  time  the  boy  receives  no  salary ;  on  the  contrary 
parents  sometimes  pay  considerable  sums  of  money  to  the 
merchant  for  the  opportunity  of  putting  the  boy  in  his  store. 
At  the  end  of  the  period  of  apprenticeship  the  young  man 
comes  out  ready  for  work,  with  a  thorough  knowledge  of  his 
line,  an  adept  at  selling. 

Probable  solution. — In  this  country  it  is  not  likely  that 
apprenticeship  will  solve  the  problem.  Such  a  plan  would 
be  satisfactory  neither  to  the  merchant  nor  to  our  young 
people.  Judging  from  present  tendencies,  it  seems  safe  to 
say  that  the  solution  will  come  through  the  public  school 
system.  Salesmen  will  be  recruited  from  the  ranks  of  grad- 


RETAIL    SELLING    AND    STORE    MANAGEMENT 

uates  of  high  school  and  college  courses  in  commerce,  and 
salesmanship  will  be  taught  in  a  manner  similar  to  the  pres- 
ent teaching  of  other  vocations  in  industrial  schools.  The 
motives,  ideals,  and  general  principles  of  retailing  must  be 
learned  in  educational  institutions.  The  art  or  the  practice 
must  be  gained,  as  before,  in  actual  selling. 

Aim  of  business  is  profit. — The  aim  of  the  man  who  in- 
vests in  a  retail  store  is  to  get  therefrom  a  financial  return 
which  is  called  profit.  This  return  is  to  the  merchant  what 
wages  are  to  the  laborer,  and  what  salary  is  to  the  office- 
holder. It  is,  in  fact,  his  wages,  though  not  regularly  paid 
on  a  basis  of  so  much  per  week  or  month.  The  amount  of 
this  profit  depends  upon  a  number  of  conditions,  chief  among 
which  is  the  merchant's  wisdom  in  choosing  a  right  loca- 
tion and  in  offering  the  right  kind  of  goods  to  the  buying 
public,  his  skill  in  attracting  the  attention  of  that  public  to 
his  goods  and  in  arousing  the  public's  interest  in  them,  and 
his  ability  to  select  and  train  skillful  salesmen  and  to  obtain 
their  best  efforts  in  his  behalf. 

Store  must  sell  goods. — In  order  to  get  profit,  the  store 
must  sell  goods.  That  is  its  chief  function.  Whatever  else 
it  may  do  is  but  preliminary  to  selling.  All  of  the  expense 
in  buying,  all  of  the  careful  planning  and  work  in  the  decora- 
tion of  windows  and  store,  all  of  the  expense  for  printer's 
ink,  all  of  the  salaries  paid  to  employes,  all  of  the  conve- 
niences provided  for  the  use  of  store  visitors,  have  but  one 
purpose  and  that  is  to  make  easy,  and  assist  in,  the  sale 
of  goods. 

Must  seek  new  and  hold  old  customers. — To  increase 
the  sale  of  goods,  the  store  must  seek,  not  only  to  increase 
the  number  of  new  customers,  but  to  hold  its  old  customers 
as  well.  Both  of  these  aims  can  be  accomplished  only  by 
rendering  complete  satisfaction.  The  store  must  have  the 
confidence  of  the  public.  That  intangible  asset  called  "good 
will"  is  the  most  important  item  a  business  can  own.  There 

8 


INTRODUCTION   TO   RETAIL   SELLING 

/  is  only  one  way  to  build  up  a  retail  business,  and  that  is  by 
building  up  popular  confidence.  The  ideal  has  been  reached 
when  the  entire  community  believes  in  the  store's  advertis- 
ing, believes  its  salesmen,  and  believes  in  its  goods.  This 
means  that  the  public  must  be  served  squarely.  He  who 
hopes  to  sell  each  customer  but  once,  knowing  that  when  the 
goods  are  delivered,  there  will  be  dissatisfaction  because  of 
poor  quality  of  misrepresentation,  deserves  to  be  put  out  of 
business,  and  honest  business  men  owe  it  to  their  calling,  as 
well  as  to  the  public,  to  take  the  lead  in  checking  such 
practices. 

The  problem  of  retail  selling. — To  render  satisfaction 
to  the  customer  and  to  obtain  for  the  house  a  fair  profit  is 
the  problem  of  retail  selling.  It  involves  right  buying,  right 
advertising,  right  salesmanship,  and  right  policy  towards 
customers.  It  is  obvious  that  to  satisfy  customers  the  goods 
must  be  what  they  want ;  but  there  is  more  to  the  problem 
than  that.  One  store  may  carry  exactly  the  same  goods  at 
the  same  prices  as  another,  and  yet  the  customers  of  the  one 
may  be  better  satisfied  than  the  customers  of  the  other. 
Something  else  must  go  with  the  goods  to  make  satisfaction, 
and  that  something  else  is  the  manner  in  which  the  goods  are 
sold. 

Factors  of  selling. — Disregarding,  for  the  time  being, 
the  accessories  of  retail  selling,  such  as  advertising,  dis- 
play, and  other  store  service,  it  is  clear  that  a  sale  brings 
together  the  following  factors :  the  salesman,  the  goods,  the 
manner  of  selling,  and  the  customer.  To  analyze  each,  to 
trace  what  actually  takes  place,  and  to  formulate  principles 
of  good  practice,  constitute  the  science  of  salesmanship. 
Analysis  of  the  salesman  will  reveal  the  necessary  qualities 
of  personality,  made  up  of  the  elements  of  physical  health, 
natural  ability,  education,  experience,  and  character.  Anal- 
ysis of  the  goods  will  reveal  quality,  construction,  appro- 
priate uses,  values,  etc.  Analysis  of  the  manner  of  selling 


RETAIL    SELLING   AND    STORE    MANAGEMENT 

will  show  the  working  of  the  mind,  based  on  the  science  of 
psychology.  And  the  study  of  the  customer  will  reveal 
those  elements  of  human  nature  that  make  buying  and  sell- 
ing possible. 

Advertising  requires,  first  of  all,  a  thorough  knowledge 
of  selling,  of  the  means  of  selling,  and  of  the  character  of 
the  goods  to  be  sold;  since  it  is  for  most  stores  an  adjunct, 
or  an  aid,  to  selling.  Its  aim  is  to  serve  the  selling  force 
of  the  store.  On  the  other  hand,  its  best  use  calls  for  a 
good  deal  of  technical  knowledge  as  to  the  means  of  ad- 
vertising mediums,  space  location,  arrangement  within 
space,  type  choice,  illustrations,  decorations,  and  the  wording 
of  the  matter.  The  knowledge  of  these  things,  plus  expert 
salesmanship,  makes  the  professional  advertising  man. 

Window  trimming  is  another  form  of  advertising,  but  it 
uses  a  special  medium.  Its  appeals  are  made  through  pleas- 
ing and  suggestive  displays  of  goods  and  of  show  cards. 
Store  display  is  closely  allied  in  principle  to  window  trim- 
ming. Both  call  for  ability  in  salesmanship  and  a  practical 
knowledge  of  the  principles  of  art. 

Store  arrangement  has  come  to  be  a  science  in  itself. 
Every  store  manager  must,  of  course,  be  interested  in  the 
problem  of  arrangement,  while  not  a  few  individuals  have 
made  such  a  study  of  this  work  as  to  make  their  services 
valuable  to  others.  Trade  papers  maintain  regular  consul- 
tation staffs  on  this  subject,  and  the  future  will  see  this 
phase  of  retailing  given  much  more  scientific  attention  than 
in  the  past. 

A  science  of  retail  selling,  to  be  complete,  is  even  broader 
than  a  consideration  of  the  above  named  things.  It  should 
consider  store  system,  store  organization,  store  policy,  wel- 
fare work,  buying,  and  other  activities.  But,  throughout  all, 
there  must  always  be  borne  in  mind  the  final  aim  of  selling 
goods  on  a  basis  that  will  give  satisfaction  to  the  customers 
and  profit  to  the  one  who  sells. 

10 


CHAPTER   II 
THE  SALESMAN 

Reasons  for  salesmen. — Why  are  there  salesmen  ?  First, 
because  of  custom.  People  have  been  in  the  habit  of  buy- 
ing goods  over  the  counter  from  salesmen  for  such  a  long 
time  that  everybody  expects  that  there  shall  be  salesmen  in 
stores.  The  alternative  to  the  living  salesman  is  the  vend- 
ing machine  that  gives  chewing  gum,  postage  stamps,  shoe 
laces,  confectionery,  matches,  or  other  goods  in  return  for 
coins  deposited  in  the  slot.  Some  think  the  principle  of 
the  vending  machine  is  applicable  on  a  larger  scale  to  entire 
stores  selling  groceries,  meats,  drugs,  confectionery,  and 
dry  goods.  There  is  no  doubt  that  the  use  of  vending  ma- 
chines will  increase.  There  are  many  so-called  salesmen 
who  are  really  not  salesmen  at  all  but  merely  order-takers, 
whose  places  might  easily  be  filled  by  vending  machines. 
But  there  is  no  mechanical  device  that  can  take  the  place  of 
the  real  salesman. 

To  educate  buyer. — Second,  there  are  salesmen  because 
the  best  informed  buyer  cannot  know  everything,  and  it  is 
the  business  of  salesmen  to  give  him  expert  information 
about  the  article  on  sale.  In  a  certain,  but  very  true,  sense 
salesmen  are  educators  of  the  public,  and  the  standards  of 
living  and  of  comfort  of  civilized  nations  are  due  largely 
to  the  efforts  of  salesmen. 

To  make  sales. — A  third  reason  for  salesmen  is  found 
in  the  fact  that  most  goods  seldom,  sell  themselves.  Per- 
il 


RETAIL    SELLING   AND    STORE    MANAGEMENT 

sonal  solicitation  seems  to  be  necessary.  And  where  there 
is  competition,  not  price  alone  but  selling  ability  as  well  is 
a  powerful  winning  factor.  There  would  be  very  little  life 
insurance  sold  were  it  not  for  the  salesmen.  Without  sales- 
men many  homes  would  not  possess  sewing  machines,  musi- 
cal instruments,  and  other  useful  and  refining  things.  Who 
can  say  that  great  good  has  not  been  accomplished  by  these 
ambassadors  of  commerce?  Because  there  are  salesmen, 
we  are  all  better  dressed,  better  fed,  and  better  informed 
than  we  should  otherwise  be. 

To  increase  values. — Good  salesmanship  increases  the 
value  of  the  goods  to  the  consumer.  Through  the  sales- 
man, the  customer  learns  to  see  more  attractiveness  in  the 
commodity,  learns  new  uses  for  it;  in  fact,  he  learns  to 
think  of  it  more  highly.  He  is  shown  how  to  get  both 
pleasure  and  profit  from  its  possession.  Its  utility  for  him 
is  increased ;  hence  it  has  greater  value. 

Importance  of  the  salesman. — The  salesman  is  the  con- 
necting link  between  the  store  and  its  customers.  He  is 
the  most  important  factor  in  the  institution.  He  is  the 
host;  the  customer  is  the  guest;  and  whether  the  guest 
shall  call  again  and  again  depends  almost  entirely  upon 
the  manner  in  which  he  is  treated  in  the  store  by  the  sales- 
man. 

Born  vs.  trained  salesmen. — It  is  well  settled  now  in 
the  minds  of  observing  people  that  good  salesmen  become 
such  not  nearly  so  much  because  of  any  peculiar  natural 
endowments  as  because  of  careful,  persistent  training  and 
study.  Good  salesmanship  does  call  for  strong  natural 
endowments,  but  most  people  have  these  endowments  at 
least  in  some  degree.  Salesmanship  calls  for  very  few 
qualities  that  are  not  necessary  for  success  in  almost  any 
other  vocation. 

Luck  in  salesmanship. — It  is  also  well  settled  that  luck 
has  but  small  place  in  the  development  of  salesmanship. 

12 


THE  SALESMAN 

The  person  who  wishes  to  become  expert  in  selling  must 
work,  must  prepare.  Education  does  not  come  to  one 
through  luck,  though  the  opportunity  to  get  it  may  be  the 
result  of  fortunate  circumstances.  Experiences  with  goods 
and  with  men  are  not  the  result  of  luck.  Nearly  all  of 
the  cases  usually  called  lucky  could,  if  the  facts  were  fully 
known,  be  explained  by  the  fact  of  previous  hard  work 
and  training. 

Health. — Successful  salesmanship,  like  every  other  activ- 
ity in  life,  demands,  first  of  all,  physical  health.  This  is 
the  basis  of  strong  personality.  By  health  is  meant  not 
only  freedom  from  disease,  but  an  abundance  of  surplus 
energy,  ability  to  use  muscle  and  mind  with  vigor,  quick 
and  keen  response  of  the  body  to  the  mind,  and  control 
that  prevents  the  expenditure  of  more  energy  than  is  nec- 
essary. A  person  in  good  health  cannot  long  be  unhappy. 
Good  health  is  the  mainspring  of  hope,  ambition,  and  opti- 
mism. Health  is  that  condition  where  the  mechanism  of 
the  body  is  working  perfectly.  This  perfect  working  is  a 
result  of  the  right  kinds  and  amounts  of  food,  drink,  air, 
sleep,  clothing,  shelter,  mental  attitude,  and  exercise. 

Rules  of  right  living. — A  study  of  salesmanship,  to  be 
complete,  should  include  a  thorough  treatment  of  personal 
hygiene — the  principles  that  must  be  applied  if  the  body 
is  to  be  made  highly  efficient.  This  in  itself  might  be  the 
subject  of  an  entire  book,  and  many  good  books  have  been 
written  about  it.  The  student  of  salesmanship  is  urged  to 
study  personal  hygiene,  to  read  its  literature,  and  to  de- 
termine definitely  that  he  will  give  due  weight  to  this  im- 
portant phase  of  the  science  of  selling.  Every  good  public 
library  contains  books  on  the  subject.  Study  them;  follow 
their  precepts. 

In  this  text  all  that  is  possible  is  to  give  a  few  general 
rules  that  are  generally  recognized  as  being  fundamental. 
The  indoor  salesman  lives  and  works  under  conditions 

13 


RETAIL    SELLING   AND    STORE    MANAGEMENT 

that  would  make  it  difficult  for  most  people  to  keep  perfect 
health.  The  lack  of  fresh  air,  of  sunlight,  and  of  exer- 
cise are  frequent  disadvantages  that  must  be  reckoned 
with.  Every  individual  has  his  own  health  problems,  and 
in  some  particulars  every  individual  case  needs  its  own 
prescription.  But  so  far  as  general  rules  are  helpful,  the 
following  will  be  found  reliable  and  full  of  suggestion. 
Certainly  if  anyone  will  conscientiously  follow  them,  his 
health  problems  will  be  reduced  to  a  minimum. 

1.  Eat  simple  food,  not  in  excess,  and  of  fair  variety. 
Eat  meat  sparingly.     No  indoor  salesman  can  retain  his 
best   health   and   vigor   while   eating  meat   three   times   a 
day,  or  rich  fatty  foods  continually. 

2.  Drink  plenty  of  fresh,  pure  water  and  whenever  you 
want  it.     Drinking  pure  water  never  brings  injury  unless 
the  water  is  too  cold. 

3.  Dress  in  loose,  light,  warm,  porous,  clean  clothing. 

4.  Keep  the  skin  clean  and  the  pores  open.     Bathe  every 
day  if  possible. 

5.  Sleep  eight  hours  every  night.     From  10  P.  M.  to  6 
A.  M.  are  the  best  hours. 

6.  Take  some  exercise  regularly,  but  moderately,  in  the 
open  air  every  day. 

7.  Insist  on  having  fresh  air  wherever  you  are — in  your 
working   room,  living  room,   and   sleeping   room.     If  you 
do,  you  will  be  free  from  colds  and  lung  trouble. 

8.  A  room  temperature  of  from  60  to  65  degrees  Fahren- 
heit is  the  best  for  working.     A  temperature  above  75  de- 
grees dulls  ambition,  energy,  and  keen  thinking. 

9.  Suppress  all  tendencies  towards  passions,  such  as  an- 
ger, hate,  and  fear.    These,  with  worry,  are  certain  causes  of 
lower  vitality  and  disease.    Do  the  best  you  can  for  to-day 
in  the  best  way  you  know  how,  and  let  no  troubles  of  to-mor- 
row cause  you  anxiety.    Your  mental  attitude  is  not  only  im- 
portant to  health,  but  tremendously  important  in  selling. 

14 


THE  SALESMAN 

10.  Abstain  from  alcoholic  drinks  and  tobacco.  Neither 
will  help  anyone  to  succeed.  Both  are  known  to  be  injuri- 
ous under  most  circumstances.  This  is  sound  business  ad- 
vice. The  man  who  lives  in  any  way  so  as  to  cut  down 
his  energy  available  for  work  is  shutting  the  door  of  oppor- 
tunity in  his  own  face.  Do  not  take  chances. 

Other  qualities. — There  are  several  other  qualities  which 
success  in  salesmanship,  in  common  with  other  business 
activities,  depends  upon.  Among  these  general  but  neces- 
sary qualities  are  education  and  character.  The  first  of 
these  opens  up  opportunities;  the  second  enables  one  to 
hold  them.  The  first  gives  its  possessor  a  knowledge  of 
men  and  of  things;  the  second  points  the  right  way  of 
action  among  men  and  things.  Character  is  partly  the 
result  of  education,  but  it  is  mostly  the  result  of  one's  own 
past  thoughts  and  acts.  Both  education  and  character  are 
the  results  of  slow,  steady  growth  from  childhood  up;  they 
continue  growing  throughout  the  entire  life.  What  the 
growth  shall  be,  whether  good  or  bad,  depends  upon  a 
person's  motives  and  his  surroundings. 

General  education. — In  these  days  an  education  is  abso- 
lutely essential  to  success  in  any  business  or  industry — 
not  necessarily  school  education,  for  an  education  can  be 
obtained,  has  been  obtained  many  times,  without  the  ad- 
vantages of  the  institutional  school.  But  there  are  usually 
a  number  of  difficulties  in  the  way  of  those  who  do  not 
have  the  opportunity  to  go  to  school,  which  result  in  their 
failure  ever  to  get  an  education.  The  fact  that  some  suc- 
ceed in  getting  learning  outside  of  schools,  and  in  spite 
of  difficulties,  does  not  constitute  an  argument  for  that 
method.  Everybody  recognizes  that  the  school  is  the  best 
way.  Yet,  even  with  schooling,  it  is  not  certain  that  the 
student  will  become  truly  educated.  The  school  supplies 
the  opportunity,  the  material,  and  the  teacher  who  shows 
the  way;  but  the  student  must,  himself,  do  the  work. 

15 


RETAIL    SELLING   AND    STORE    MANAGEMENT 

That  means  that  his  mind  must  have  the  motive  to  get 
something  out  of  the  teaching,  and  his  eyes,  hands,  and 
brain  must  do  the  work  that  is  to  count.  The  main  value 
of  the  school  is  that  its  teachers  stimulate  motive  and  show 
short-cuts  to  intellectual  wealth  that  a  man  working  by 
himself  might  overlook. 

There  has  been  a  great  change  of  opinion  concerning  the 
value  of  education  during  the  past  few  years,  and  every 
business  man  seeking  either  his  own  or  his  family's  ad- 
vancement and  the  public  welfare  should  study  the  needs 
and  the  tendencies  of  education.  Most  merchants  and 
salespeople  of  the  generation  just  past  began  their  careers 
with  barely  a  common  school  education,  with  now  and 
then  a  business  college  course  to  finish  off.  To-day  one 
meets  on  all  hands  in  the  retail  business  high  school  and 
even  college  graduates  in  increasing  numbers.  Some 
stores  will  not  employ  inexperienced  persons  who  have  less 
than  a  high  school  education,  while  large  department  stores 
frequently  seek  out  strong  college  graduates  for  their  im- 
portant positions. 

Business  education. — The  reasons  for  this  change  are 
clear.  In  the  first  place,  education  is  much  more  common 
now  than  ever  before.  It  is  easier  than  formerly  to  find 
graduates  of  higher  schools  who  seek  business  positions. 
In  the  second  place,  a  good,  stiff  educational  training  in  high 
school  or  college  gives  a  fund  of  knowledge  and  a  power 
of  mind,  which  may  not  be  directly  applicable  to  business 
situations  at  once,  but  which  become  extremely  valuable 
after  the  graduate  has  received  enough  business  experi- 
ence. In  the  third  place,  schools  are  beginning  to  offer 
courses  of  instruction  definitely  fitting  students  for  busi- 
ness— commercial  arithmetic,  bookkeeping,  commercial  law, 
commercial  correspondence,  business  management,  adver- 
tising, and  salesmanship. 

How  to  increase  your  education. — The  retail  salesman 

16 


THE  SALESMAN 

cannot  afford  to  neglect  his  education  along  general  lines,  if 
he  has  not  already  received  a  good  one.  Business  demands 
knowledge,  particularly  in  the  use  of  English,  in  geogra- 
phy, arithmetic,  history,  civics,  sociology,  and  political  econ- 
omy. Other  subjects,  such  as  literature,  natural  science, 
and  higher  mathematics  are  also  of  value,  though  not  usu- 
ally so  directly.  Knowledge  of  English  is  the  most  funda- 
mental of  all.  It  includes  good  vocabulary,  ability  to  ex- 
press one's  thoughts  clearly  and  pleasantly,  and  good  pro- 
nunciation. Selling  is  helped  by  correct  language;  cor- 
rect language  places  one  on  a  par  with  all  who  use  the 
same  language.  Recently  the  Columbia  Phonograph  Com- 
pany issued  a  vest  pocket  dictionary  giving  the  pronunci- 
ation of  all  of  the  terms  and  names  appearing  on  its  musical 
records.  It  was  found  that  salesmen  who  could  not  pro- 
nounce these  words  correctly  were  losing  some  sales.  One 
should  know  his  own  business,  and  knowing  his  business 
means,  among  other  things,  knowing  how  to  express  him- 
self about  it  in  every  one  of  its  phases  in  an  intelligent 
manner. 

Knowledge  of  common  arithmetic  is  absolutely  essential, 
but  it  is  so  uncommon  among  the  masses  of  salesmen  as 
to  cause  great  losses  and  much  trouble.  The  possession  of 
a  large  amount  of  arithmetical  knowledge  is  not  so  impor- 
tant as  the  ability  to  use  well  the  fundamental  operations  of 
addition,  subtraction,  multiplication,  and  division  of  whole 
numbers,  and  common  and  decimal  fractions.  Nothing  but 
drill  and  attention  will  make  one  proficient  in  these  matters. 
Every  salesman  should  be  skilled  in  making  change.  He 
should  be  able  to  give  the  cost  for  quantities  and  fractions 
of  quantities  of  whatever  goods  he  sells,  without  hesitation 
and  without  error.  The  following  are  types  of  some  of 
the  problems  that  have  caused  many  salesmen  to  use  up 
enormous  amounts  of  time  in  the  aggregate,  and  to  make 
numerous  costly  errors: 

17 


RETAIL    SELLING    AND    STORE    MANAGEMENT 

What  is  the  cost  of  J  of  a  yard  of  cloth  at  900  per 

yard? 
What  shall  be  the  selling  price  of  22  inches  of  velvet 

18  in.  wide,  cut  on  bias,  at  $2.25  per  yard? 
How  to  make  change,  when  the  customer  buys  $2.45 
worth  of  goods,  and  offers  in  payment  a  $5.00  bill  ? 
The  cash  register  contains  nothing  but  dollars, 
half  dollars,  and  dimes.  You  ask  the  customer 
if  he  has  the  right  change.  He  says,  "I  have  no 
other  money  except  a  quarter." 

One  traveling  salesman  offers  the  buyer  trade  discounts 
of  25%  and  10%.     Another  offers  33%   for  the 
same  goods.     Which  is  the  better  proposition? 
There  are  many  simpler  problems  than  these  in  which 
salesmen  in  every  store  make  mistakes — mistakes  that  thor- 
ough education  and  training  would  eliminate. 

There  is  an  opportunity  for  anyone  who  cares  to  do  so, 
to  build  up  his  general  education.  One  method  is  to  get 
the  books  bearing  upon  the  subject  and  to  study  by  oneself; 
another  is  to  study  by  correspondence;  and  still  another 
is  to  get  the  help  of  a  tutor  at  odd  hours.  In  some  large 
cities,  night  schools  offer  excellent  advanced  courses  which 
are  patronized  by  large  numbers  of  salesmen  and  sales- 
women. 

All  education  needs  to  be  supplemented  by  reading  and 
study  of  present  day  topics.  General  knowledge  can  be 
built  up  very  greatly  by  careful  reading  of  the  best  maga- 
zines and  papers.  Good  business  demands  that  one  should 
never  fail  to  keep  in  touch  with  the  chief  events  of  the 
day. 

Character. — Character  is  a  composite  thing.  It  is  made 
up  of  various  ideals  and  habits  that  cause  us  to  do  the 
things  of  life  in  certain  ways.  It  represents  what  we  really 
are,  both  mentally  and  morally.  What  other  people  know 
of  our  character  is  called  our  reputation.  Possibly,  from 

18 


THE  SALESMAN 

a  business  standpoint,  reputation  might  be  called  the  more 
important.  But  reputation  represents  what  people  see  of 
our  character,  and  since  what  we  really  are  is  bound  to 
be  known  in  the  long  run,  character  is  the  thing  that  needs 
attention.  If  character  is  good,  let  reputation  take  care 
of  itself. 

Present  demands. — Business  practice  has  lately  changed 
much  with  respect  to  the  demands  upon  character.  It  used 
to  be  considered  sufficient  for  business  purposes  if  a  man 
paid  his  debts  and  kept  his  contracts  and  other  obligations, 
no  matter  how  black  his  character  might  otherwise  be. 
Now,  while  conditions  are  still  not  ideal,  the  path  of  the 
transgressor  is  made  much  harder.  The  immoral  employe 
finds  it  difficult  to  find  a  position,  or  to  keep  it;  not  only 
the  dishonest,  but  the  loose-living  merchant  finds  trouble  in 
getting  all  the  credit  he  may  want;  customers  avoid  lying 
salesmen;  and  never  before  have  graft  and  crookedness 
been  so  generally  frowned  upon.  The  tests  of  character 
are  much  more  incisive  and  searching  than  ever  before. 
Reputation  comes  closer  and  closer  to  being  the  true  pic- 
ture of  character.  Steps  are  taken  by  those  in  business 
to  know  all  about  others  with  whom  they  come  in  contact, 
not  only  from  a  business  standpoint,  but  also  socially  and 
personally.  The  credit  man  of  the  wholesale  store  or  man- 
ufacturer has  a  complete  personal  record  of  the  character 
as  well  as  the  business  standing  of  his  customers.  The 
employer  in  the  large  department  store  has  a  record  of  the 
personal  character  of  every  salesman  from  infancy  up.  If 
you  were  an  employer,  it  would  be  your  duty  to  know 
your  employes  in  as  full  a  manner  as  possible.  That  is 
good  business  in  these  days.  The  right  kind  of  men  and 
women  welcome  this.  It  is  to  their  advantage.  As  for  the 
others — all  the  more  reason  for  the  new  system. 

Results  of  dishonesty. — A  man  who  is  not  honest  in  mod- 
ern business  is  ignorant,  shortsighted,  or  simple-minded. 

19 


RETAIL    SELLING    AND    STORE    MANAGEMENT 

Dishonesty  simply  does  not  pay.  It  is  not  necessary  that  dis- 
honesty should  be  found  out  and  proved,  in  order  to  result 
in  damage.  In  fact,  the  finding  out  of  the  dishonesty  of 
the  wrong-doer  might  be  the  easiest  way  out  of  the  diffi- 
culty for  him.  The  one  who  does  wrong,  gets  found  out, 
and  pays  the  penalty,  may  have  an  end  to  his  misfortune. 
But  the  dishonest  individual  who  is  not  found  out  also 
pays  a  penalty.  In  the  first  place,  the  act  of  dishonesty 
becomes  in  his  mind  something  to  be  hidden.  He  must  be 
careful.  He  ceases  to  be  open-minded  and  open-hearted. 
His  fear  of  being  found  out,  if  he  is  not  careful,  leads  him 
into  becoming  reserved,  suspicious,  and  unattractive.  His 
ability  as  a  salesman  is  impaired.  He  fails  to  improve  as 
rapidly  as  before.  He  fails,  therefore,  of  promotions  and 
better  places.  Though  not  found  out,  he  may  be  suspected 
by  his  employer.  There  are  a  thousand  different  signs  and 
methods  by  which  suspicion  may  be  aroused,  yet  without 
convicting  proof.  The  dishonest  employe  loses  his  employ- 
er's confidence.  This  means  again,  no  promotion;  and, 
when  dull  times  come,  this  salesman  is  the  first  to  lose  his 
place.  He  may  think  that  he  was  dismissed  by  his  em- 
ployer because  of  dull  times !  That  was  only  a  part  of  the 
reason. 

There  are  other  desirable  qualities  of  character,  as,  for 
instance,  economy,  promptness,  initiative,  ambition,  self- 
confidence,  determination,  and  willingness  to  learn. 
Many  more  could  be  added.  In  fact,  the  qualities  of  char- 
acter essential  for  success  in  salesmanship  are  the  same  as 
the  qualities  essential  for  success  in  any  other  walk  of  life. 

Economy  of  living. — There  is  need  that  strong  words 
should  be  spoken  upon  the  subject  of  economy.  For  the 
individual  on  a  salary,  no  matter  how  low  it  may  be,  there 
is  but  one  rule — he  should  live  within  the  amount  received. 
To  do  otherwise  leads  to  the  most  serious  difficulties  to  be 
found  in  business  to-day.  There  is  among  many  groups  of 

20 


THE  SALESMAN 

business  women  a  dangerous  desire  to  outshine  one  an- 
other. Those  living  at  home,  and  who  contribute  little  or 
nothing  for  board  and  room,  can,  of  course,  easily  outdo 
their  fellow  workers  who  are  not  so  fortunate.  To  make 
up  for  the  difference  some  salespeople  unfortunately  have 
been  led  into  dishonesty,  theft,  or  other  immorality.  This 
is  a  well  recognized  problem  among  business  concerns. 
It  has  been  found  absolutely  necessary  in  many  stores  to 
make  rules  regarding  the  kind  of  dress  to  be  worn  by 
women  employes  while  on  duty.  Much  can  be  done  by 
older  salespeople,  by  showing  the  right  example  and  by 
giving  judicious  advice  to  the  younger  members  of  the 
force.  The  following  case  is  typical  and  true.  In  a  depart- 
ment store  in  Chicago  the  girls  in  the  inspecting  and  wrap- 
ping department  had  taken  to  wearing  unbecoming,  large 
"rats"  in  their  hair,  with  changes  for  every  shift  in  the 
prevailing  city  fashions.  The  head  of  the  department,  a 
sensible  lady,  foreseeing  trouble  in  the  continuance  of  the 
practice,  called  the  girls  together  and  gave  them  a  frank, 
friendly  talk  upon  the  subject.  The  girls  were  impressed, 
and  the  result  was  that  the  janitor  carried  out  a  full  bushel 
basket  of  "rats,"  voluntarily  thrown  away  by  the  young 
ladies. 

This  criticism  has  been  aimed  chiefly  at  business  women, 
but  it  might  in  many  cases  be  applied  equally  to  men  also. 
Live  within  your  income.  By  doing  so  you  will  supply 
people  with  a  good  sign  of  your  integrity.  There  should  be 
no  regular  position  in  any  business  house  which  pays  less 
than  a  living  wage.  The  existence  of  such  places  are  bad 
for  the  employe  and  worse  for  the  business  in  the  long 
run. 

Be  on  time. — All  business  people,  especially  salespeople, 
need  to  be  prompt.  Business  is  complex.  It  takes  many 
individuals  working  together  in  unison  to  make  it  succeed. 
When  a  man  is  appointed  to  a  place  in  any  business,  he  is 

21 


RETAIL    SELLING   AND    STORE    MANAGEMENT 

needed  there  for  the  full  measure  of  time.  He  must  be  on 
time  either  at  his  place  of  work  or  at  his  place  of  appoint- 
ment. To  be  on  time  is  a  sign  of  strong  character.  It  is  a 
good  recommendation  for  a  person  when  another  says  of 
him :  "He  is  always  on  time." 

Watching  the  clock. — Watching  the  clock  has  been  the 
cause  of  more  disaster  to  ambitions  than  most  people  would 
believe.  The  reason  for  it  is  this.  It  is  a  sign  to  the  em- 
ployer or  others  interested  in  the  business,  of  lack  of  inter- 
est on  the  part  of  the  employe.  No  interested  person  will 
think  of  the  clock  until  the  very  minute  of  closing.  The  em- 
ployer reasons :  "How  can  I  promote  one  who  does  not  care 
about  my  work  ?  I  want  people  who  are  anxious  to  help  me." 
No  person  working  for  another,  who  desires  to  climb,  can 
afford  to  have  his  employer  think  in  this  way  about  him. 
What  to  do  is  obvious — get  interested  in  your  work.  If 
you  are  unable  to  become  interested,  for  your  own  good 
seek  other  employment. 

Initiative. — Initiative  is  a  quality  that  few  people  have 
in  marked  degree.  It  is  one  of  the  most  valuable  qualities, 
though,  and  must  be  possessed  by  executives  or  managers. 
Salesmanship,  as  we  shall  see,  gives  opportunity  for  the 
development  of  initiative  to  a  much  greater  extent  than 
most  other  occupations.  Initiative  is  essentially  the  result 
of  a  desire  to  do,  a  knowledge  of  conditions,  and  wide- 
awakeness  concerning  the  business.  It  is  a  quality  that 
can  certainly  be  developed  by  turning  one's  attention  and 
effort  to  it. 

Ambition. — Ambition  is  the  quality  that  makes  one  dis- 
satisfied with  present  position  or  present  results.  Progress 
is  the  result  of  ambition.  Life  becomes  interesting  because 
of  it.  "Fair  "  is  the  best  adjective  that  can  ever  be  applied 
to  the  work  of  any  person  who  lacks  in  ambition.  Yet, 
while  ambition  is  so  essential,  it  must  not  run  away  from 
the  rest  of  the  man.  It  must  be  kept  on  a  level  with  health, 

22 


THE  SALESMAN 

and  must  be  accompanied  by  persistent  self-preparation. 
To  be  progressive  is  to  be  ambitious.  When  people  grow 
old,  ambition  is  lost,  and  ways  become  set.  But  age  is 
not  a  matter  of  years  only.  Ambition  not  only  leads  to 
higher  places  but  also  staves  off  that  period  that  we  call 
"growing  old." 

Self-confidence. — If  there  is  any  one  quality  that  is  no- 
ticeably lacking  in  most  people,  it  is  self-confidence.  There 
are  many  who  put  on  a  veneer  of  bravado — who  puff  them- 
selves up  with  conceit ;  but  the  quiet,  powerful  force  of  self- 
confidence  that  says  little,  but  knows,  and  shows  that  it 
knows,  what  to  do  next,  is  really  rare.  Conceit  and  all  at- 
tempts to  convince  other  people  of  our  self-confidence  by 
mere  talking,  are  signs  of  weakness  of  character.  Lack 
of  self-confidence  is  caused  by  fear.  This  fear  constantly 
dogs  us  and  tells  us,  "You  can't  do  it;  you  can't  do  it!" 
when,  in  all  likelihood,  the  doing  would  be  easy.  There 
are  no  persons  who  are  so  self-confident  as  those  who  are 
perfectly  frank  with  themselves,  who  are  not  afraid  to 
admit  their  failures,  and  who  are  ready  to  measure  what- 
ever ability  they  have  regardless  of  the  showing.  Frank- 
ness is  closely  associated  with  this  quality.  What  you 
know  you  can  do  makes  you  reliant;  uncertainty  causes 
fear.  Insincerity  under  strain  causes  fear,  and  confidence 
falls  down.  Bluffing  sometimes  succeeds,  but  its  failures, 
when  they  do  come,  seriously  outbalance  its  successes. 
The  fear  that  causes  lack  of  self-confidence  not  only  grows 
out  of  lack  of  knowledge  or  experience,  but  also  out  of  the 
condition  of  the  body.  Self-reliance  and  confidence  naturally 
accompany  health.  It  is  not  surprising  that  a  person  with 
dyspeptic  stomach,  with  brain  fogged  from  loss  of  sleep, 
or  system  deranged  from  use  of  improper  foods  or  bever- 
ages should  back  down  at  critical  moments.  Salesmen 
need  self-confidence.  To  get  it,  they  must  know  their 
goods,  their  business,  their  own  abilities,  and  keep  their 

23 


RETAIL    SELLING   AND    STORE    MANAGEMENT 

bodies  in  the  pink  of  health.  Add  experience  to  these  things, 
and  the  confidence  that  wins  will  be  theirs. 

Determination  and  working  capacity. — Determination 
is  the  ability  to  stick  to  the  work,  to  the  customer,  to  an 
ambition,  or  to  a  worthy  idea  until  it  yields  results.  It 
gives  working  capacity.  It  keeps  its  possessor  at  work  when 
the  average  individual  would  quit.  It  carries  the  work 
to  completion  thoroughly  and  with  satisfaction  to  the 
worker. 

Discipline. — One  other  general  quality,  valuable  to  all 
classes  of  business  people,  is  that  of  amenability  to  dis- 
cipline. Modern  industry  and  commerce  have  developed  to 
such  an  extent  that  every  business  house  must  have  its  parts 
working  together  so  as  to  prevent  friction.  This  result  is 
obtainable  only  by  system  and  discipline.  Inability  to  fit 
one's  self  into  modern  system  bespeaks  an  arrested  devel- 
opment, suitable  only  to  small  individual  concerns,  and  to 
a  past  condition  of  industry.  The  chief  accomplishments 
of  to-day  are  the  result  of  team  work ;  and  this  means  each 
individual  acting  intelligently  but  completely  under 
direction. 


CHAPTER   III 
KNOWLEDGE  AS  AN  ASSET  IN  SELLING 

Review. — In  the  two  preceding  chapters  we  discussed  the 
place  and  purpose  of  retailing,  and  the  general  or  funda- 
mental qualities  which  salesmen,  in  common  with  other 
business  men,  must  possess.  It  was  stated  that,  although 
the  making  of  profit  was  the  motive  for  establishing  indi- 
vidual business  units,  the  whole  industrial  system  is  a  social 
institution,  that  it  exists  for  the  purpose  of  supplying  peo- 
ple's wants,  taking  goods  from  where  they  are  plentiful  and 
putting  them  down  where  they  are  in  demand.  The  retail 
salesman  is  needed  because  people  have  the  habit  of  trading 
with  him,  because  he  helps  to  educate  buyers  concerning 
their  wants,  because  he  is  a  powerful  factor  in  competition, 
and,  lastly,  because  his  services  really  increase  the  value  of 
goods  to  the  consumer.  The  successful  salesman  must  be 
healthy,  must  have  education,  must  be  honest,  must  live 
economically  and  sensibly,  must  be  prompt,  must  have  ambi- 
tion, initiative,  self-confidence,  determination,  working  ca- 
pacity, and  must  be  subject  to  discipline. 

Technical  knowledge. — In  addition  to  the  qualifications 
for  success  in  any  business,  already  explained,  there  are  cer- 
tain requirements  specifically  fitting  one  for  successful  sales- 
manship. Aside  from  experience,  which  must  be  assumed 
as  essential  in  every  case,  these  requirements  are  largely 
matters  of  special  knowledge  and  common  business  sense. 
What  is  meant  by  common  business  sense  is  comprehended 

25 


RETAIL    SELLING   AND    STORE    MANAGEMENT 

under  the  expressions,  knowledge  of  the  goods  to  be  sold, 
knowledge  of  the  house,  knowledge  of  general  business  con- 
ditions, and  knowledge  of  people.  It  is  in  respect  to  these 
kinds  of  knowledge  and  their  applications  that  salesmanship 
is  set  off  from  all  other  occupations;  and  in  proportion  as 
the  salesman  extends  his  abilities  in  these  lines,  his  selling 
becomes  more  and  more  scientific,  and  his  occupation  more 
and  more  a  profession. 

Knowledge  of  the  goods. — A  story  has  gone  the  rounds 
that  one  of  the  most  successful  salesmen  in  Germany  was 
asked  the  reason  for  his  success.  He  replied,  "I  defy  any 
man  to  ask  me  any  question  about  my  goods  that  I  can't 
answer."  That  is  knowledge  of  the  goods. 

Stock. — The  first  thing  that  a  salesman  needs  to  do  on 
coming  into  a  store  is  to  learn  the  stock  that  he  is  to  sell — 
where  it  is,  what  it  is,  in  what  quantities  it  is  kept,  and  its 
prices.  The  constant  selling  and  movement  of  goods  call 
for  regular  study  of  stock.  The  salesman  must  know  his 
stock  so  that  he  can  instantly  turn  to  what  is  asked  for,  if 
it  is  in  stock  at  all.  His  knowledge  of  stock  must  neces- 
sarily be  up  to  date,  so  that  his  reports  for  buying  may  be 
made  in  sufficient  time  to  prevent  any  possibility  of  his  being 
"just  out"  of  any  goods  that  ought  to  be  on  hand.  He  must 
know  his  stock  so  well  that,  if  a  customer  has  no  preference, 
he  may  at  once  turn  to  the  kind  of  goods  in  which  the  store 
has  the  largest  supply,  or  which  usually  move  the  slowest. 
Every  store  has  such  goods,  which,  if  not  handled  in  this 
way,  will  accumulate  and  become  a  dead  loss. 

Prices. — There  should  be  no  hesitancy  in  giving  the  price, 
and,  therefore,  all  goods  should  be  clearly  marked.  To 
omit  the  price  mark  is  to  trust  to  memory.  When  prices 
are  not  marked,  an  extra  salesman  called  into  the  store  in 
case  of  emergency  would  be  entirely  at  a  loss,  and  even  the 
best  memories  are  likely  to  fail  at  times.  Marking  obviates 
loss.  And  yet  the  salesman  should  not  rely  solely  on  price 

26 


KNOWLEDGE  AS  AN  ASSET  IN  SELLING 

marks.  He  should  know  his  prices  so  well  that  when  he 
makes  his  selections  to  show  the  customer,  he  will  select 
what  he  thinks  will  suit  in  price  as  well  as  quality. 

Uses. — Next  to  knowledge  of  stock  and  prices  comes 
knowledge  of  the  uses  of  goods.  The  knowledge  of  stock 
and  of  prices  simply  gives  ability  to  wait  on  customers,  and 
to  give  them  just  what  they  have  already  made  up  their 
minds  that  they  want.  This  is  "order-taking."  Salesman- 
ship begins  when  the  salesman  describes  the  goods.  Fully 
four-fifths  of  so-called  salesmen  are  simply  "order-takers." 
They  wait  on  customers ;  they  do  not  sell  them. 

What  are  the  uses  for  the  article?  If  a  cloth,  is  it  dress 
goods  or  suiting?  Is  it  for  young,  middleaged,  or  old 
persons?  Is  it  for  working,  house,  street,  or  reception 
wear?  Can  it  be  used  for  anything  else  appropriately? 
Similarly  in  the  shoe  department:  Are  the  shoes  suitable 
for  rough,  or  ordinary,  or  light  outdoor  use?  Are  they  for 
tender  feet?  Are  they  for  working  or  dress  purposes? 
Questions  like  these  can  be  asked  for  every  article  sold. 
After  learning  the  stock,  the  salesman  should  school  him- 
self thoroughly  and  completely  on  uses  of  the  goods  for  sale 
in  the  store,  so  far,  at  least,  as  goods  allied  to  his  own  line 
are  concerned.  If  this  were  done,  a  mistake  like  the  fol- 
lowing would  not  occur.  A  lady  came  to  the  men's  hosiery 
counter  and  asked  for  long  tan  hose  for  a  boy  of  four- 
teen. The  order-taker  replied,  "We  have  none."  A 
salesman  who  overheard  the  conversation  invited  the  cus- 
tomer to  go  to  the  misses'  hosiery  department,  where  she 
got  what  she  wanted. 

Qualities. — Salesmanship  does  not  stop  with  the  ability 
to  tell  what  the  goods  are  for,  if  it  seems  to  be  necessary 
to  give  other  points  in  order  to  make  the  sale.  The  sales- 
man must  know  and  must  be  able  to  tell  in  the  plainest,  yet 
most  attractive  way,  about  the  qualities  and  structure  or 
composition  of  the  goods.  This  often  calls  for  a  knowledge 

27 


RETAIL    SELLING   AND    STORE    MANAGEMENT 

of  how  the  goods  are  made,  the  processes  they  have  gone 
through,  the  labor  put  upon  them,  the  care  exercised,  etc. 
It  may  also  call  for  a  knowledge  of  the  history  of  the  article. 
Add  to  this  a  knowledge  of  similar  goods  and  competitive 
makes,  and  you  have  one  of  the  substantial  bases  of  sales- 
manship. It  matters  not  how  poor  a  personality  one  may 
have,  or  how  lacking  in  tact  he  may  be,  if  he  is  honest  and 
knows  his  goods  and  has  ability  to  express  what  he  knows 
in  simple  language,  he  will  be  able  to  achieve  some  success 
in  selling.  He  will  not  be  the  most  successful  salesman 
without  personality  and  tact ;  but  he  will  have  assured  value. 
People  like  to  trade  with  men  who  know  their  goods  and 
who  can  give  information  about  their  uses,  qualities,  struc- 
ture, etc.  They  have  confidence  in  such  salesmen. 

With  reference  to  any  particular  article,  the  following 
questions  will  suggest  what  the  salesman  should  know: 

Where  and  how  is  the  article  made?  What  is  it  made 
of?  Will  it  wear  well?  Will  its  colors  come  out  or  fade? 
What  does  it  cost  to  produce  ?  Why  does  it  cost  that  much  ? 
What  are  its  advantages  over  similar  articles?  Has  the 
article  had  an  interesting  history? 

Analysis  of  knowledge  of  goods. — As  a  further  help  to 
the  salesman  who  wishes  to  study  his  goods  in  a  professional 
way,  there  follows  an  outline  of  the  points  that  make  up 
the  knowledge  that  a  good  salesman  should  have  about  the 
goods  he  sells.  Not  all  the  points  are  applicable  to  every 
sort  of  goods,  but  most  of  them  are: 

1.  What  goods  are  in  stock. 

a.  Ranges  in  sizes,  qualities,  colors,  and  prices. 

b.  Quantities  of  each. 

2.  Where  goods  are  located. 

a.  Stock  on  sale. 

b.  Reserve  stock. 

3.  Specific  knowledge  about  each  article. 

a.  Selling  price. 

28 


KNOWLEDGE  AS  AN  ASSET  IN  SELLING 

b.  Condition. 

c.  How  long  in  stock. 

d.  Its  uses. 

e.  Purposes  for  which  it  is  best  suited. 

f.  Convenience. 

g.  Comfort, 
h.  Durability. 
i.  Safety. 

j.   Purity. 

k.  Style. 

1.    Its  points  of  beauty. 

m.  What  it  is  made  of. 

n.  Methods  of  making. 

o.  Costs  to  produce. 

Material,     labor,     machinery,     transportation, 

tariff,  etc. 

p.  Available  supply  in  the  market. 
q.  History  of  the  uses  of  the  article. 
r.   Present  tendencies  in  use. 

s.   Competition  with  other  makes  of  the  same  article, 
t.   Competition  with  other  goods, 
u.  The  makers  and  their  reputation, 
v.  Guaranty  that  can  be  given, 
w.  Tests  for  its  qualities. 
x.  Satisfaction  it  gives  to  present  users  or  has  given 

to  past  users. 

How  to  learn  the  goods. — How  shall  a  salesman  get 
knowledge  of  his  goods?  By  carefully  examining  and 
studying  the  goods  themselves ;  by  making  inquiries  of  other 
members  of  the  store  organization;  by  inquiries  of  the  trav- 
eling salesmen  who  sell  the  goods ;  by  writing  to  the  manu- 
facturers for  information ;  and  by  the  study  of  the  literature 
bearing  on  the  subject.  He  should  read  the  advertising 
matter  of  the  manufacturer  or  dealer  who  distributes  the 

29 


RETAIL    SELLING   AND    STORE    MANAGEMENT 

goods.  A  book  on  commercial  geography  is  more  valuable 
to  salespeople  than  to  anyone  else  because  it  traces  the  pro- 
duction of  goods  and  their  distribution  over  the  world. 
Trade  papers,  standard  magazines,  and  encyclopedias  con- 
tain much  help  for  an  enterprising  salesman.  Whole  books 
are  written  about  many  articles ;  and  to  know  some  lines  of 
goods  requires  a  lifetime  of  study.  Salesmen  have  made 
great  reputations  by  their  special  knowledge  of  some  par- 
ticular articles. 

Knowledge  of  the  house. — The  salesman  needs  to  keep 
informed  about  general  business  conditions,  such  as  the  fac- 
tors affecting  prices  and  values  and  the  tendencies  in  supply 
and  demand  in  his  own  goods.  He  should  study  broadly 
the  effects  of  national  and  state  legislation,  the  relations  of 
capital  and  labor  in  the  industrial  world,  and  the  tendencies 
and  efforts  to  teach  higher  efficiency.  In  all  these  matters 
he  needs  to  keep  himself  open-minded.  He  should  try  to 
see  both  sides  of  open  questions,  and  cultivate  liberality  of 
view.  Very  few  propositions  are  either  all  right  or  all 
wrong.  Avoid  partisanship  if  you  want  to  be  a  successful 
merchant.  General  business  conditions  are  guides  to  the 
forecasting  of  future  possibilities,  and  are,  therefore,  what 
every  buyer  must  study. 

Knowledge  of  people. — Last,  but  not  least,  among  the 
special  fields  of  knowledge  in  which  the  salesman  must  be- 
come proficient,  is  that  of  knowledge  of  people.  Bringing 
knowledge  of  goods  and  knowledge  of  people  together 
makes  quick  sales  of  goods.  This  kind  of  knowledge  is 
often  called  knowledge  of  "human  nature,"  and  sometimes 
"practical  psychology."  Whatever  its  name,  it  means  knowl- 
edge of  what  people  think,  of  how  they  feel,  of  what  they 
do,  of  the  things  they  like  and  dislike,  their  customs,  habits, 
observances,  their  ways  of  living,  their  food,  clothing, 
shelter,  amusements,  their  education,  their  social  classes, 
their  ways  of  making  a  living,  their  home  surroundings, 

30 


KNOWLEDGE  AS  AN  ASSET  IN  SELLING 

religions,  and  societies.  Alexander  Pope  said,  "The  proper 
study  of  mankind  is  man."  It  is  truly  the  study  for  sales- 
men. What  a  salesman  knows  about  his  customers  governs 
to  a  great  degree  what  he  will  say  to  them,  what  articles  to 
show,  and  what  selling  arguments  to  use.  The  man  with 
knowledge  is  always  respected.  All  people  like  to  trade 
with  the  retailer  who  knows  what  they  want,  how  they  want 
it,  and  when  they  want  it. 

False  methods  of  study. — There  is  no  easy  or  royal  road 
to  a  knowledge  of  people.  Experience  and  observing  eyes 
are  necessary.  Many  people  have  been  led  to  believe  that 
it  is  possible  to  learn  to  read  people  by  the  shape  of'  their 
heads,  by  facial  features,  or  other  signs.  It  should  be  said, 
once  for  all,  that  there  is  absolutely  no  scientific  ground  for 
most  of  these  beliefs.  They  turn  the  attention  of  the  stu- 
dent away  from  the  true  direction  and  method  of  study, 
and  are,  therefore,  harmful.  Phrenology  was  upset  when 
scientists  actually  discovered  what  the  brain  functions  were, 
and  when  it  was  found  that  these  were  not  at  all  in  the 
places  indicated  by  the  phrenologists.  Physiognomy  has  an 
element  of  truth  in  it,  but  it  cannot  be  trusted  far.  The 
nose,  chin,  forehead,  and  hands  have  been  held  responsible 
for  many  qualities.  All  of  these  signs  fail  under  searching 
criticism.  The  color  of  the  hair  and  of  the  eyes  has  noth- 
ing to  do  with  what  a  man  thinks,  or  with  his  character. 
Honesty  cannot  be  judged  from  the  shape  of  the  ears. 

Physiognomy. — There  is  an  element  of  truth  in  physiog- 
nomy, as  stated  above.  A  man  who  is  thinking  tends  to 
express  what  he  has  in  mind.  Signs  of  this  may  be  de- 
tected in  the  eyes,  in  the  movement  of  the  smaller  muscles 
of  the  face,  even  in  the  walk,  the  posture,  and  so  on.  The 
real  character  reader  is  the  one  who  engages  a  person  in 
conversation,  or  watches  him  while  he  is  at  work  and  is  un- 
conscious of  being  watched.  The  character  reader  watches 
every  movement;  he  notes  not  only  what  is  said,  but  also 


RETAIL    SELLING   AND    STORE    MANAGEMENT 

how  it  is  said.  When  he  imparts  information  to  the  indi- 
vidual that  is  being  tested,  he  watches  the  features  to  see 
whether  the  information  is  received  with  favor  or  disfavor. 
With  such  evidence,  collected  in  fragments,  purely  circum- 
stantial in  character,  he  may  shrewdly  guess  what  another 
person  thinks  and  feels,  and  what  his  character  may  be. 
Even  at  that,  unless  the  observation  is  very  complete  and 
for  a  considerable  time,  and  is  backed  up  by  real  evidence 
of  past  acts,  information  from  others,  and  other  facts,  mis- 
takes in  judgment  might  easily  be  made. 

Psychology  in  business. — A  business  man  can  get  much 
help  and  direction  in  his  efforts  to  learn  about  people  and 
human  nature  from  the  sciences  of  psychology  and  sociol- 
ogy. Psychology  is  the  science  of  the  individual  mind, 
while  sociology  is  the  science  of  society.  Sociology  shows 
why  people  come  together  for  various  purposes,  their  mo- 
tives, methods  of  thinking  together,  and  accomplishments 
in  these  associations.  In  a  text  of  this  kind  it  would  not  be 
possible  to  take  up  a  study  of  sociology.  But  psychology 
so  plainly  lays  the  foundations  for  selling  that  it  will  be 
necessary  to  spend  considerable  time  upon  it.  Selling  is 
really  a  psychological  interaction  of  individual  minds.  The 
next  chapter  will  present  a  brief  outline  of  the  subject  of 
psychology  as  applied  to  selling. 


CHAPTER   IV 
THE  PSYCHOLOGY  OF  SELLING 

Psychology  and  business. — Psychology  is  a  word  that  has 
come  into  business  to  stay.  It  supplies  most  of  the  theory 
upon  which  all  good  salesmanship  is  based.  Every  sales- 
man who  attempts  to  suit  his  customers,  to  influence  them 
to  come  to  a  decision,  and  to  get  them  to  grasp  new  ideas 
about  goods,  practices  the  principles  of  psychology  whether 
he  knows  it  or  not.  The  more  successful  he  is  in  his  work, 
the  closer  he  follows  those  principles.  Anyone  who  must 
work  with  people  for  his  results,  either  in  selling  or  buying, 
or  in  employing  and  managing  men,  practices  the  principles 
of  psychology,  and  is  a  good  psychologist  in  proportion  to 
his  knowledge  of  why  he  follows  certain  methods.  But 
even  if  it  is  possible  to  get  along  well  with  people,  to  sell, 
buy,  employ,  and  be  employed,  with  only  an  intuitive  knowl- 
edge of  this  science,  it  goes  without  saying  that  the  bring- 
ing of  its  principles  broadly  out  into  the  open,  and  the 
studying  of  them,  should  be  a  much  surer  and  quicker  way 
to  business  efficiency. 

Definition  and  use  of  psychology. — Psychology,  as  a 
science,  simply  explains  how  our  minds  are  constituted.  // 
shows  how  ideas  get  into  the  mind,  and  how  they  work 
after  they  get  in.  This  is  not  the  usual  definition  found  in 
the  books  on  the  subject,  but  it  is  what  they  mean,  so  far  as 
business  is  concerned.  The  salesman  wants  to  get  the  idea 
into  the  mind  of  the  customer  that  the  article  to  be  sold  is 

33 


RETAIL    SELLING   AND    STORE    MANAGEMENT 

just  what  the  customer  wants.  He  wants  that  idea  to  work 
in  the  customer's  mind,  and  to  stick,  so  that  the  customer 
will  remain  satisfied.  How  all  this  occurs  is  explained  in 
psychology. 

The  mind. — No  one  knows  what  the  mind  is,  except  that 
it  is  the  thing  within  us  that  thinks,  and  feels,  and  decides 
what  we  shall  do  and  what  we  shall  not  do.  But  even  if 
we  do  not  know  what  the  mind  is,  we  are  quite  sure  about 
where  and  how  it  works,  in  a  general  way.  Its  organs  are 
the  brain  and  the  nerves. 

The  brain. — The  brain  is  the  headquarters  or  main  office 
of  the  nervous  system.  It  is  here  that  the  mind  seems  to 
be  and  it  is  certainly  here  that  the  mind's  principal  work  is 
done.  The  brain  is  completely  surrounded  by  the  bones  of 
the  head,  which  form  a  protecting  box.  Through  the  bony 
sides  of  this  box  there  are  but  a  few  small  openings.  These 
admit  only  blood-vessels  and  nerves.  The  largest  opening, 
which  is  at  the  bottom  of  the  skull,  lets  in  the  largest  nerve 
of  all,  the  spinal  cord. 

Roads  to  the  brain. — Whatever  is  to  reach  the  brain  in 
a  natural  way  must  come  in  through  either  the  blood-vessels 
or  the  nerves.  The  use  of  the  blood-vessels  is  known. 
They  carry  nourishment  and  heat  to  the  brain  and  waste 
matter  away  from  it.  Ideas,  or  the  stuff  that  causes  ideas, 
must,  therefore,  come  in  through  the  nerves. 

The  nervous  system. — If  we  follow  the  nerves  out  from 
the  brain  we  shall  find  that  these  little  white  fibers  run  out 
to  all  parts  of  the  body.  As  they  proceed  outward,  they 
branch  out  like  trees,  until  the  surface  of  the  body,  just 
beneath  the  skin,  is  covered  so  thickly  with  these  minute 
fibers  that  if  would  be  hard  to  find  a  single  place  no  larger 
than  the  point  of  a  needle  that  is  not  occupied  by  nerve  fibers 
or  their  endings. 

Special  senses. — Two  of  the  nerves  leaving  the  brain  run 
out  to  the  eyes,  and  have  their  endings  in  the  eyes.  Other 

34 


THE  PSYCHOLOGY  OF  SELLING 

nerves  run  out  to  and  end  in  the  ears,  nose,  and  mouth. 
It  is  clear  that  these  are  nerves  of  great  importance  to  the 
mind.  Through  them  we  get  our  sensations  of  sight, 
hearing,  smell,  and  taste. 

Structure  of  the  brain. — The  brain  itself,  as  well  as  the 
largest  nerves,  is  not  a  solid  mass,  but  is  made  up  of  an 
immense  number  of  cells  with  delicate  little  fibers  con- 
necting them  all  together  in  a  multitude  of  ways.  These 
cells  can  be  seen  only  under  a  high-power  microscope. 
Their  number  is  so  great  that  imagination  fails  to  grasp 
the  meaning  of  the  figures.  We  may  gain  some  compara- 
tive idea,  however,  from  the  statement  that  if  a  person 
should  try  to  count  them,  and  counted  fifty  per  minute  for 
twelve  hours  per  day,  it  would  take  him  over  200  years  to 
finish  the  counting!  Yet  we  may  assume  that  each  cell 
with  its  attached  fibers  has  its  use  in  the  processes  of  think- 
ing and  the  other  work  of  the  mind. 

Sensation. — Let  us  see  how  an  impression  passes  from 
the  outside  of  the  body  into  the  brain.  Suppose  you  place 
your  finger  on  the  point  of  a  pencil.  The  little  nerve  end- 
ings are  very  plentiful  in  the  skin  of  your  fingers.  The 
pencil  point  comes  in  contact  with  some  of  them.  This 
contact,  or  touch  as  we  call  it,  excites  the  nerve  endings, 
and  they  start  a  current  of  some  kind,  perhaps  like  an  elec- 
tric current  in  a  telephone  or  electric  light  wire,  back  along 
the  nerve  until  it  reaches  the  brain.  We  are  positive  that 
there  is  a  current.  If  the  nerve  were  cut  off  at  the  arm, 
we  should  never  be  able  to  feel  the  point  of  the  pencil  on 
the  finger.  The  rate  of  speed  at  which  the  current  travels 
has  been  measured,  and  it  has  been  found  to  be  a  much 
slower  current  than  electricity  in  a  wire.  The  nerve  cur- 
rents differ  in  speed  in  different  individuals,  and  even  at 
different  times  in  the  same  individual,  depending  upon 
bodily  condition  or  health. 

Brain  impression. — When  the  current  reaches  the  brain, 

35 


RETAIL    SELLING   AND    STORE    MANAGEMENT 

it  passes  to  the  particular  part  that  receives  sensation  cur- 
rents from  your  ringer,  and  here,  in  some  cell,  an  impres- 
sion is  made.  Just  what  kind  of  impression  we  do  not 
know.  No  microscope  has  revealed  just  what  it  looks  like, 
but  the  facts  seem  to  show  that  there  is  formed  some  sort 
of  real  furrow  or  indentation  which  remains  in  the  brain. 
No  attempt  will  be  made  to  describe  what  takes  place  in 
the  brain  and  mind  accurately.  The  processes  are  most 
complex,  and  scientists  have  not  yet  been  able  to  trace 
them  out  completely.  There  is  much  dispute  and  differ- 
ence of  opinion  over  many  of  the  finer  points.  All  that 
is  intended  here  is  to  give  a  concrete  basis  which  shall  be 
sufficiently  correct  to  supply  a  true  working  theory  upon 
which  may  be  built  an  explanation  of  the  psychology  of 
business,  and  of  selling  in  particular. 

Experience  made  up  of  impressions. — Every  impression 
that  reaches  the  brain,  whether  from  the  skin,  the  eyes, 
ears,  nose,  tongue,  or  elsewhere,  passes  in  through  nerves, 
and  leaves  a  definite  mark  in  the  brain.  Our  daily  experi- 
ences— what  we  see,  hear,  smell,  taste,  and  feel — consist  of 
nerve  currents  entering  the  brain  and  leaving  indentations 
of  some  kind  in  the  appropriate  brain  cells. 

Impressions  and  memory. — While  we  do  not  know  what 
the  mind  is,  we  do  know  that  it  works  upon  these  impres- 
sions, indentations,  or  furrows  that  have  been  made  in  the 
brain  by  incoming  nerve  currents.  Where  the  impression 
is  made,  the  mind  is  present,  and  we  say  we  know,  or  we 
see,  or  we  smell,  etc.  In  the  illustration  we  started  with, 
you  knew  that  you  were  touching  a  pencil  point.  A  little 
later  your  mind  may  come  back  to  that  particular  impres- 
sion made  in  the  brain;  then  you  will  recall  how  the  pencil 
point  felt.  That  is  memory. 

The  brain  a  record. — The  adult  brain  is  a  sort  of  record 
of  the  experiences  of  life  over  which,  and  through  which, 
the  mind  moves,  in  much  the  same  way  as  a  phonograph 

36 


THE  PSYCHOLOGY  OF  SELLING 

reproducer  moves  over  the  indented  wax  cylinder.  Passing 
back  over  the  old  impressions  has  the  effect  of  recalling 
the  images  of  the  things  which  originally  caused  the  im- 
pressions. 

Brain  plasticity. — But  the  brain  is  not  entirely  like  the 
phonograph  wax  cylinder.  Its  material  is  live,  plastic,  and 
somewhat  elastic  or  springy.  The  impressions  made  by  in- 
coming nerve  currents  are  deepest  just  after  the  making. 
The  brain  matter  in  the  cells  gradually  springs  back,  but 
in  most  cases  it  can  never  recover  so  far  as  to  obliterate 
the  trace  of  the  impression  entirely.  If  it  could,  we  should 
remember  nothing.  As  it  is,  we  recall  best  within  two 
seconds  after  an  experience.  After  twenty  minutes  the 
recoil  of  the  matter  has  almost  been  completed.  What  we 
can  remember  that  long  is  likely  to  stay  with  us  indefinitely. 

How  we  recall. — The  succession  of  impressions  from  out- 
side upon  the  brain  tends  to  make  a  sort  of  track  or  furrow, 
leading  from  one  impression  to  the  next,  in  regular  order. 
What  is  meant  may  best  be  described  by  illustration.  Im- 
agine an  ordinary  list  of  incidents,  such  as  might  come  to 
any  salesman.  Suppose  that  you  are  a  dry  goods  salesman. 
You  arrive  at  the  store  at  eight  o'clock  in  the  morning ;  the 
weather  is  clear;  the  sun  is  shining;  you  meet  some  ac- 
quaintances as  you  enter  the  building;  Mr.  Brown,  another 
salesman,  you  see,  has  reached  the  store  ahead  of  you  and 
is  busy  taking  the  coverings  off  the  counters  and  shelves; 
you  remove  your  coat  and  hat  and  begin  your  work,  arrang- 
ing your  stock  and  wiping  up  the  dust ;  you  see  an  edge  of 
the  cloth  on  one  bolt  that  looks  frayed ;  you  try  to  improve 
it  by  trimming  it  with  a  pair  of  scissors,  but  instead  of 
putting  the  scissors  in  your  pocket  you  place  them  on  a  shelf 
and  go  on  with  your  work  with  just  a  single  thought  that 
you  may  have  to  use  the  scissors  again  soon  in  a  similar 
way,  but  the  occasion  does  not  arise;  the  store  manager 
calls  you  to  another  part  of  the  store;  a  discussion  arises 

37 


RETAIL    SELLING   AND    STORE    MANAGEMENT 

on  the  policy  of  buying  an  article  of  which  a  salesman  left 
a  sample  at  the  store  the  evening  before;  then  some  cus- 
tomers come  in;  you  serve  those  coming  to  your  depart- 
ment; shortly  before  noon  a  customer  comes  in  who  buys 
some  cloth;  you  put  your  hand  to  your  pocket  for  your 
scissors  and  find  them  gone.  Just  what  do  you  do?  Your 
mind  seems  to  jump  back  in  time,  possibly  to  yesterday, 
and  it  seems  to  be  able  to  follow  very  accurately  the  line 
of  events  that  occurred  to  you.  You  recall  no  instance 
where  the  scissors  were  used  and  not  put  back.  Then  your 
mind  retraces  the  impressions  of  the  events  of  this  morning. 
Quickly  you  recall  everything,  down  to  the  very  act  of 
cutting  the  frayed  edges  off  the  cloth.  Then  you  remember! 
The  next  impression  in  your  brain  tells  you  where  you  laid 
the  scissors  and  how  it  happened.  You  go  directly  to  the 
place  where  they  are,  and  get  them. 

Conditions  of  good  memory. — There  are  connections 
between  the  impressions  in  the  brain,  due  to  the  fact  that 
the  impressions  were  made  closely  one  after  the  other. 
Each  impression  stands  for  an  idea,  and  the  clearness  and 
ease  of  recollection  of  this  idea  depends  entirely  upon  the 
character  of  the  impression  and  the  pathway  leading  into 
it.  If  the  pathway  is  deep  and  well  defined,  memory  is 
good;  if  broken  and  shallow,  recollection  is  difficult. 

Association  with  other  impressions. — There  is  one  other 
factor  besides  the  connection  of  ideas  that  assists  ease  of 
recall;  that  is  the  number  of  paths  that  lead  into  an  impres- 
sion. If  we  have  the  same  thing  happen  to  us,  or  see  the 
same  thing,  a  number  of  times  in  different  connections,  it 
is  clear  that  the  thing  will  be  represented  in  a  similar  num- 
ber of  paths.  That  is  to  say,  a  number  of  paths  will  cross 
each  other  at  a  common  point,  which  point  is  the  impression 
of  the  thing  that  has  been  experienced  or  seen  several  times. 
This  is  important,  since  study  of  mental  action  shows  that 
the  mind  does  not  readily  leave  paths  already  made,  if, 

38 


THE  PSYCHOLOGY  OF  SELLING 

indeed,  it  ever  does  so ;  hence,  if  an  impression  of  an  idea 
has  but  a  single  pathway  that  the  mind  can  follow  into  it, 
it  may  be  more  difficult  to  recall  than  if  there  were  several 
pathways. 

How  to  improve  memory. — Applying  this  knowledge  of 
brain  action  to  practical  life,  we  can  readily  see  how  mem- 
ory can  be  developed  and  strengthened.  If  we  desire  to 
remember  certain  things  well,  we  must  consider  that  recol- 
lection comes  from  the  mind's  access  to  and  use  of  impres- 
sions in  the  brain  matter.  Good  memory  is  characterized 
by  deep,  well  defined  "impressions,"  with  plenty  of  paths 
through  which  the  mind  can  approach  the  particular  "im- 
pression" that  represents  the  idea  that  we  want  to  recall. 

Remembering  names. — For  example,  how  do  you  recall 
the  name  of  a  man  whom  you  met  some  days  ago?  At 
that  time,  you  met  him  coming  down  the  street  with  a 
friend  of  yours.  You  saw  his  face,  his  clothes,  his  way  of 
walking;  you  heard  the  sound  of  his  voice.  Your  friend 
introduced  him  to  you  as  Mr.  Brewer.  Remarks  followed 
about  the  pleasant  weather,  crops,  business  prospects,  etc., 
and  you  passed  on.  Mentally,  the  meeting  resulted  in  the 
forming  of  a  new  path  of  impressions  in  your  brain,  among 
which  there  are  several  that  came  definitely  from  the  man 
you  met,  through  your  eyes,  the  touch  of  his  hand,  and 
through  your  ears.  Among  the  impressions  you  heard  and 
spoke  his  name. 

Now,  when  you  meet  him  to-day,  you  recognize  him  at 
once.  You  recall  the  place  and  circumstance  of  meeting 
him,  but  you  cannot  at  first  recall  his  name.  Rapidly  your 
mind  runs  over  the  pathways  formed  on  that  day,  and  per- 
sistently— nay,  sometimes  painfully — seeks  that  little  path- 
way that  leads  into  the  impression  that  will  recall  the  words, 
"Mr.  Brewer."  Your  mind  tries  one  lead  after  another, 
only  to  find  that  they  do  not  bring  up  the  name.  You 
hesitate  helplessly;  then,  if  your  mind  is  fortunate,  it  strikes 

39 


RETAIL   SELLING   AND    STORE    MANAGEMENT 

the  right  track,  the  impression  is  discovered,  and  you  say, 
"Mr.  Brewer." 

Science  of  memorizing. — Now,  is  there  not  a  scientific 
way  of  remembering  such  a  difficult  thing  as  a  name? 
Salesmen  need  to  know  how  to  do  this  more  than  any  other 
group  of  people,  unless  it  be  politicians.  This  is  the  way 
it  may  be  done :  When  you  meet  Mr.  Brewer,  get  the  name 
clearly,  speak  it  clearly,  fasten  your  mind  upon  it.  That 
will  make  the  impression  deep.  Next,  say  it  to  yourself 
while  you  look  at  the  man's  eyes,  face,  form,  and  when  you 
hear  him  speak  and  see  him  walk.  This  will  give  you  many 
pathways  leading  into  the  impression.  After  he  has  left  you, 
recall  his  name  a  few  times  during  the  next  twenty  minutes. 
This  will  fix  his  name  so  that  you  will  know  him  anywhere 
you  may  see  him,  and  so  that  you  can  call  him  by  name 
almost  the  very  moment  after  you  catch  a  glimpse  of  him. 

The  same  method  may  be  applied  in  the  learning  of  other 
things  that  must  be  memorized,  and  with  equal  success. 
Attend  with  all  your  will  power  to  the  thing  you  wish  to 
remember,  repeat  it  several  times  and  after  intervals  of 
rest,  and,  lastly,  associate  it  with  as  many  of  your  other 
ideas  as  you  can.  This  is  the  science  of  memorizing. 

Flights  and  stops  of  the  mind. — The  adult  brain  is  criss- 
crossed in  thousands  of  directions  by  pathways  such  as  we 
have  described.  During  all  our  waking  hours,  the  mind 
travels  through  them,  from  one  to  another,  choosing  for 
itself  which  course  to  take  at  every  point  of  crossing.  Its 
movements  are  irregular,  consisting  of  stops  and  flights, 
the  stops  occurring  in  the  idea  impressions,  and  the  flights 
along  the  pathway  between  impressions.  The  amount  of 
time  spent  at  each  stop  varies,  but  probably  averages  less 
than  three  seconds. 

Mental  feeling. — Which  route  shall  be  taken  when  path- 
ways cross  is  partly  determined  by  a  special  quality  of  the 
mind;  namely,  feeling.  Every  impression  brings  to  the 

40 


THE  PSYCHOLOGY  OF  SELLING 

mind  some  kind  of  feeling,  sometimes  good,  sometimes  bad, 
sometimes  pleasure,  sometimes  pain.  The  mind  naturally 
selects  the  route  which  will  bring  it  pleasure.  There  are 
some  exceptions  to  this,  but,  for  business  purposes,  we 
may  assume  that  human  minds  constantly  seek  to  be  made 
happy  or  pleased,  that  ideas  yielding  such  satisfaction  will 
be  welcomed,  and  that  the  painful  kind  will  be  ignored  and 
spurned. 

Pleasure  and  interest. — In  many  cases  there  is  no  acute 
pleasure  or  pain  involved  in  an  idea;  it  may  be  said  to  be 
almost  neutral.  It  is  to  be  noted  that  such  ideas  are  not 
particularly  interesting.  How  much  pleasure  or  pain  or 
interest  do  you  feel  when  I  say  that  John  Jones  of  New 
York  will  be  promoted  next  week?  The  best  that  you  can 
do  is  merely  to  tolerate  the  reading  of  the  sentence.  How- 
ever, if  you  had  heard  that  you  were  to  be  promoted  next 
week,  the  idea  of  promotion  would  carry  strong  feeling 
with  it,  and  surely  of  the  pleasurable  kind.  Every  time 
your  mind  would  return  to  it,  you  would  feel  a  glow  of 
pleasure. 

Sense  of  being  right. — Pleasure  for  the  mind  is  in  many 
cases  only  the  sense  of  being  right,  or  on  the  right  track. 
What  is  thought  must  be  true.  The  mind  always  wants 
to  be  square  with  itself.  We  say  that  we  hate  ourselves 
for  taking  a  false  position.  A  liar  can  never  be  truly  proud 
of  himself,  and  a  dissembler  never  truly  happy,  because  of 
this  mental  quality  of  feeling.  Your  mind  rebels  and  objects 
to  going  any  further  with  a  set  of  ideas  when  you  find  one 
that  is  not  true  according  to  your  past  experience.  If  some 
one  tells  you  that  a  yard  is  forty  inches  long,  you  throw  the 
idea  aside  and  never  go  back  to  it.  The  mind  never  will- 
ingly permits  you  to  call  black  white. 

Expression. — Every  part  of  the  brain  is  connected  directly 
or  indirectly  with  the  rest  of  the  body,  or,  at  least,  with 
parts  of  it,  by  the  nervous  system.  When  the  mind  with 

41 


RETAIL   SELLING   AND    STORE    MANAGEMENT 

its  moving  energy  receives  an  idea  from  a  brain  impression, 
it  tends  to  send  out  currents  over  the  nerves  from  the 
brain  to  the  body.  Mention  a  favored  toy  to  a  child,  and 
see  its  face  light  up  with  pleasure.  The  energy  of  the  mind 
has  overflowed  from  the  brain  out  into  the  face.  Some  one 
tells  a  funny  story.  Most  of  us  see  the  point,  and  the  out- 
going currents  from  the  brain  cause  laughter.  Some  one 
in  Mary's  hearing  remarks  about  the  frequent  calls  of  John 
to  see  her.  She  blushes — another  type  of  overflow  or  form 
of  expression  coming  from  the  impression.  All  strong 
emotions  express  themselves  in  the  face  and  body.  There 
are  slighter  forms  of  physical  expression,  often  uncon- 
scious, for  nearly  all  ideas  in  most  persons ;  although  most 
of  us  try  to  control  our  feelings,  as  we  call  them,  so  that 
they  will  not  show.  A  frank  person  is  one  who  expresses 
what  he  thinks  and  feels  in  speech.  Common  courtesy  and 
tact  demand  that  there  must  be  some  repression,  at  least 
part  of  the  time.  The  buyer  who  shows  his  every  idea  and 
feeling  is  very  much  at  the  mercy  of  salesmen. 

Summary. — To  sum  up  what  we  have  gone  over,  we  may 
say  that  the  mind  works  only  upon  impressions  found  in 
the  brain,  which  are  brought  into  the  brain  by  nerve  cur- 
rents. These  impressions  are  connected  by  pathways  along 
which  the  mind  moves  constantly  during  our  waking  hours. 
The  presence  of  the  mind  in  an  impression  constitutes  recall 
of  the  image  of  the  cause  of  the  impression.  In  an  adult 
brain  the  pathways  are  numberless,  and  cross  each  other 
in  countless  points.  At  each  crossing  point  is  offered  the 
opportunity  of  mental  choice.  Which  direction  the  brain 
takes  depends  in  most  cases  upon  the  possibility  of  deriving 
pleasure  or  satisfaction  from  the  ideas  or  thoughts  along 
the  possible  pathways.  The  satisfaction  may  be  acute 
pleasure,  or,  more  frequently,  merely  a  sense  of  being  right. 
Every  impression  tends  to  have  some  expression  when  it  is 
in  the  mind. 

42 


CHAPTER   V 
HOW  INSTINCTS  AID  IN  SELLING 

Differences  in  individuals. — The  mind  works  the  same  in 
any  brain,  but  the  materials  upon  which  it  works  differ  in 
every  individual,  because  of  differences  in  past  experiences 
and  differences  in  ability  to  see  and  grasp  impressions.  The 
difference  in  content  (that  is,  the  impressions  in  the  brain 
upon  which  the  mind  works)  causes  the  difference  in 
thought,  tastes,  opinions,  etc. 

Instincts  the  bases  of  sameness. — The  question  may  natu- 
rally arise:  if  all  men  differ  in  mental  content  (and  that  is 
admitted),  how  can  any  common  ground  be  found?  How 
can  any  two  people  agree  upon  anything?  How  can  buyer 
and  seller,  for  example,  reach  any  basis  for  conducting  an 
exchange?  The  explanation  is  to  be  found  in  another 
phase  of  psychology — in  the  study  of  human  instincts. 

What  instincts  are. — An  instinct  is  an  ability,  born  in 
a  person,  to  do  certain  things  without  being  taught.  All 
living  animals  have  instincts ;  and  in  some,  as,  for  example, 
the  bees  and  ants,  the  instincts  are  remarkable.  Man,  as 
well  as  animals,  has  a  large  number  of  instincts,  though 
in  many  cases  they  are  quite  thoroughly  covered  up  by 
habits  and  by  what  has  been  learned.  These  instincts  are 
in  many  cases  guides  to  the  mind  in  its  choice.  To  do 
otherwise  than  what  instinct  demands  would  frequently 
be  painful.  We  have  here  a  key  to  likenesses  among  men. 
Common  instincts  cause  many  people  to  like  the  same  things 
and  to  agree  upon  the  same  things. 

43 


RETAIL    SELLING    AND    STORE    MANAGEMENT 

If  the  salesman  will  begin  his  selling  talk  by  an  appeal 
to  a  fundamental  human  instinct,  he  is  almost  sure  to  get 
attention,  while  to  begin  with  a  purely  intellectual  appeal 
would  cause  failure  unless  the  customer  had  had  pleasure- 
able  experience  in  the  past  with  something  similar  to  the 
subject  of  the  appeal. 

In  some  cases,  instincts  show  themselves  in  man  merely 
as  tendencies  or  feelings.  Feeling  itself  is  instinctive.  Our 
instinct  for  tone  leads  us  to  enjoy  good  music.  Certain  ar- 
rangements of  form  or  of  lines,  as,  for  example,  in  window 
display,  store  arrangement,  or  newspaper  advertising,  are 
attractive  to  onlookers,  because  of  the  instinct  for  good 
form,  balance,  and  harmony.  Certain  color  combinations 
seem  harmonious  to  nearly  all  people  because  of  our  inborn 
instinct  for  these  things. 

We  give  our  attention  completely  and  at  once  to  some 
things,  while  we  have  to  force  ourselves  to  pay  attention 
to  others.  This  happens  because  of  the  presence  of  in- 
stincts drawing  us  in  one  case,  and  the  absence  of  instincts 
in  the  others.  These  facts  of  human  nature  are  fundamental 
in  all  business  relations,  but  especially  in  salesmanship. 

Let  us  note  some  of  the  more  specific  instincts. 

Possession. — Almost  everybody  has  an  instinct  of  posses- 
sion. We  can  assume  that  everybody  likes  to  own  things. 
If  we  can  find  out  what  they  like,  we  can  be  quite  sure  that 
those  are  the  things  that  they  will  want  to  own. 

Hunger  and  thirst. — Everybody  has  the  instincts  of  hun- 
ger and  thirst.  If  we  can  but  find  out  what  kinds  of  food 
and  drink  people  have  been  accustomed  to  use,  and  if  we 
can  have  the  opportunity  of  displaying  such  foods  where 
they  may  be  seen,  we  can  feel  sure  of  making  sales. 

Clothing  and  ornament. — There  is  a  common  human  in- 
stinct or  desire  for  clothing,  and  not  only  clothing  for  the 
sake  of  its  usefulness  in  protecting  the  body  from  cold 
and  storm,  but  also  clothing  because  of  its  esthetic  value.  In 

44 


HOW  INSTINCTS  AID  IN  SELLING 

other  words,  the  instinct  for  ornament  seems  to  be  a  double 
one.  We  can  depend  on  rinding  it  in  some  form  or  other  in 
nearly  every  human  being.  Just  what  may  be  considered 
ornament,  however,  by  any  people  will  depend  upon  what 
their  early  training  has  been.  We  might  safely  say  that 
the  instinct  for  ornament  is  older  and  stronger  than  the  in- 
stinct for  clothing;  for  among  the  lower  races,  such  as  the 
Australian  aborigines  and  the  South  American  Indians, 
clothing  as  protection  from  the  elements  is  almost  unknown, 
while  the  instinct  for  ornament  is  well  developed.  The 
Guiana  Indian  woman  thinks  nothing  of  going  abroad  in  her 
society  without  a  single  article  of  clothing,  but  she  would 
not  for  a  minute  think  of  leaving  her  hut  without  red  and 
blue  paint  rings  on  her  cheeks.  And,  as  we  study  higher 
and  higher  races  of  people,  we  find  that  the  instinct  for 
ornament  remains  strong. 

Collecting. — The  hoarding  or  collecting  instincts  are  very 
common.  Some  of  us  have  the  fad  of  collecting  books; 
others,  postcards;  others,  curios;  and  others,  bric-a-brac; 
The  miser  is  the  type  of  man  who  has  an  extraordinary  in- 
stinct for  collecting  money.  If  we  can  but  learn  what  par- 
ticular track  this  instinct  of  hoarding  or  collecting  takes 
in  any  given  person,  we  may  be  able  to  predict  what  he  will 
be  tempted  to  buy. 

Hunting. — The  hunting  instinct  is  strong,  more  particu- 
larly in  men  than  in  women.  The  pictures  in  the  advertising 
pages  just  before  fishing  season  showing  the  sportsman 
wading  in  the  trout  streams  and  struggling  with  a  gamey 
fish,  have  tremendous  power  in  arousing  this  instinct.  The 
same  is  true  of  the  advertising  of  rifle  and  gun  houses  in 
the  fall  before  the  hunting  season  begins. 

Constructing. — The  constructing  instinct  is  another  that 
is  common  to  a  great  many  people.  Most  of  us  like  to 
build  something  or  other.  Notice  how  many  people  there 
are  that  are  interested  in  craftsman  work.  Women  who 

45 


RETAIL    SELLING   AND    STORE    MANAGEMENT 

like  to  spend  their  time  with  fancy  work  are  responding 
to  this  instinct.  Children  who  build  houses  with  their  blocks 
are  other  excellent  illustrations.  Some  furniture  houses 
make  much  in  their  advertising  and  in  their  salesmanship 
of  the  point  that  their  furniture  will  require  some  work 
on  the  part  of  the  customer  before  it  will  be  ready  to  use. 
This  is  a  direct  appeal  to  a  customer's  constructive  instinct, 
and  seems  to  be  a  very  successful  one.  There  are  oppor- 
tunities for  doing  a  great  amount  of  business  on  the  basis 
of  this  instinct,  most  of  which  are  yet  unworked. 

Companionship. — Nearly  every  one  has  the  instinct  of 
companionship.  We  do  not  like  to  be  alone.  Our  instinct 
for  companionship  makes  us  interested  in  other  people,  and 
makes  us  buy  the  things  necessary  to  keep  up  our  compan- 
ionship with  others.  Clothing,  ornament,  games,  furniture, 
books,  magazines,  art  work,  and  so  on,  are  closely  connected 
with  the  fundamental  instinct  of  desire  for  company. 

Curiosity. — There  is  also  the  instinct  of  curiosity.  This 
may  be  said  to  be  the  dominating  instinct  in  the  shopper 
who  comes  to  a  store  and  carefully  examines  all  of  the 
stock  even  if  she  does  not  buy ;  and  yet,  it  is  this  instinct 
which  underlies  the  discovery  of  all  sorts  of  truths,  prin- 
ciples, inventions,  etc.  One  who  is  not  curious  cannot  learn. 
Curiosity  means  open-mindedness.  By  exciting  the  curi- 
osity of  the  passers-by,  merchants  draw  much  trade.  People 
follow  a  crowd;  the  explanation  is  generally  human  curi- 
osity. 

Imitation. — Everybody  has  an  innate  desire  to  be  like 
other  people  or  at  least  like  some  other  people.  This  is 
the  instinct  of  imitation.  Most  of  the  knowledge  that  we 
have  and  most  of  the  things  that  we  know  how  to  do  were 
gained  and  learned  by  imitating  some  one  else.  Many  things 
we  imitate  without  any  consciousness  that  we  are  imitating; 
and  this  is  one  of  the  surest  signs  that  imitation  is  an  in- 
stinct. But  from  the  retail  merchant's  standpoint  imita- 


HOW  INSTINCTS  AID  IN  SELLING 

tion  is  an  instinct  that  needs  attention.  It  is  the  thing  that 
lies  at  the  bottom  of  the  causes  of  fashion.  It  supplies  the 
assurance  that  more  than  one  thing  of  a  kind  will  be  wanted 
by  the  people,  and  that  what  some  want  will  be  wanted  by 
others. 

Individuality. — Imitation  is  antagonized  by  another  in- 
stinct that  we  call  individuality,  which  causes  us  to  want 
to  be  different  from  other  people.  But  individuality 
works  only  a  part  of  the  time  in  any  person  and  then  usu- 
ally upon  one  thing  at  a  time.  Imitation  governs  all  the 
rest  of  our  desires  and  thoughts.  Individuality  is  another 
important  cause  at  the  bottom  of  fashion  changes. 

Miscellaneous  instincts. — Then  there  are  the  important 
instincts  of  sex  and  parentage.  The  window  display  that 
shows  children's  goods  and  suggests  the  satisfaction  that 
may  come  from  the  using  of  such  goods,  must  always  ap- 
peal to  the  woman  whose  mother  instinct  is  strong.  Be- 
sides these  there  are  other  common  instincts  of  fear, 
anger,  play,  pugnacity,  emulation,  sympathy,  modesty,  travel 
(wanderlust),  etc.,  all  of  which  are  open  avenues  to  the 
mind. 

As  already  stated,  instincts  are  the  things  that  make  us 
all  more  or  less  alike.  Possession,  hunger,  ornament,  friend- 
ship, lover  and  sweetheart,  parent  and  child,  are  words 
which  stand  for  things  that  make  the  whole  world  kin. 

Habit. — When  the  mind  has  once  received  a  certain  set  of 
ideas  in  a  given  order,  it  tends  to  recall  them  in  the  same 
order.  The  explanation  for  this  seems  to  be  that  a  path- 
way has  been  formed  between  the  brain  impressions  when 
they  were  received,  and  that  this  pathway  is  followed  by 
the  mind  in  recalling  anything.  In  fact,  it  may  be  difficult 
to  think  of  those  ideas  in  any  other  order;  and,  after  the 
mind  has  gone  over  the  same  ideas  a  number  of  times  in 
the  same  way,  it  becomes  even  more  difficult  to  change  the 
order  of  thinking.  That  order  becomes  a  habit  of  thinking, 

47 


RETAIL    SELLING   AND    STORE    MANAGEMENT 

Power  of  habit. — Suppose  that  we  hear  the  expression 
"Jones  is  dishonest,"  told  in  such  a  manner  and  by  such 
a  person  that  we  have  no  reason  to  doubt  the  truth  of  the 
statement.  Our  suspicion  will  be  aroused  about  Jones. 
Suppose  that  we  think  this  statement  over  several  times  by 
ourselves,  or  hear  the  same  thing  from  others.  The  sus- 
picion becomes  very  much  deeper  and  more  firmly  fixed. 
Later  we  may  meet  Jones  and  find  that  he  is  a  good  con- 
versationalist ;  he  may  have  a  good  appearance ;  he  may  be 
frank  looking;  he  may  hold  a  position  of  trust  among  his 
own  people;  we  may  have  no  evidence  of  his  dishonesty 
in  any  way.  He  may  be  perfectly  honest,  but  it  will  be 
difficult  for  us  to  separate  these  two  ideas  in  our  mind, 
"Jones"  and  "dishonest."  We  shall  hold  our  suspicion  for 
a  long  time.  The  power  of  habit  is  exceedingly  strong. 

In  a  number  of  ways  we  all  know  about  the  power  of 
habit.  Our  hands  learn  to  wrap  parcels  or  tie  bundles  in 
a  certain  way,  and  it  becomes  difficult  to  change  to  another 
way.  We  use  certain  expressions  in  greeting  people,  and 
these  become  a  habit  with  us.  If  we  smile  when  we  meet 
our  friends  the  first  few  times,  we  are  likely  to  smile  when- 
ever we  meet  them.  An  idea  that  pleases  us  is  likely  to 
please  us  again.  The  liking  for  various  foods  is  a  habit. 
When  we  grow  accustomed  to  anything,  we  form  a  habit. 
A  customer  who  has  worn  a  large,  wide  hat  has  formed 
a  habit  of  wearing  that  hat;  and,  if  it  suited  her,  it  will 
be  somewhat  difficult  to  get  her  to  change  to  a  very  much 
smaller  one  at  once.  People  have  habits  in  their  ways  of 
buying.  Some  have  formed  suspicions  that  they  are  being 
overcharged,  others  that  they  must  always  haggle  over  the 
price.  Some  even  look  upon  all  salesmen  with  suspicion. 
Such  habits  make  the  customer  a  hard  one  to  deal  with.  A 
new  salesman  must  work  harder  to  make  good  than  an 
old  one  with  old  customers,  because  the  old  customers  are 
not  in  the  habit  of  trading  with  the  new  salesman. 


HOW  INSTINCTS  AID  IN  SELLING 

Habit  and  instinct. — A  habit  may  or  may  not  be  in  accord 
with  the  natural  instincts  of  the  customer.  Sometimes  a 
habit  is  forced  upon  a  person  against  his  instincts ;  so  there 
is  often  a  conflict  between  the  two.  In  some  cases  the  habit 
grows  stronger  than  the  instinct.  Honesty  is  such  a  habit. 
The  young  child  with  the  instinct  of  possession  takes  what- 
ever he  wants  whenever  he  can  do  so.  He  does  not  have 
any  appreciation  of  the  fact  that  it  belongs  to  others.  Later, 
when  he  learns  that  he  cannot  have  some  things,  he  may 
try  to  take  them  when  not  watched.  This  is  following  nat- 
ural instincts.  But  the  ideas  of  honesty  and  the  wrong  of 
taking  things  that  he  should  not  have,  are  taught  to  the 
child  in  several  ways,  until  he  gets  into  the  habit  of  thinking 
of  honesty.  The  temptation  to  steal  comes  later,  but  the 
idea  of  honesty  and  the  habit  of  thinking  it  is  so  strong 
that  the  desire  to  steal  is  overruled. 

Business  and  habits. — So  far  as  possible  the  salesman 
should  carry  on  his  business  in  the  ways  that  habit  has  fixed 
among  his  customers,  for  to  upset  a  habit  is  always  the  cause 
of  irritation.  New  salesmen  will  meet  this  problem  more 
frequently  than  the  more  experienced;  for  the  experienced 
salesman  will  have  acquired  habits  himself  in  dealing  with 
his  customers.  Experience  is  of  greatest  help  simply  be- 
cause it  keeps  the  salesman  from  doing  things  that  are  not 
habitual  in  the  trade.  To  know  how  to  treat  a  customer 
is  largely  a  matter  of  knowing  his  or  her  habits.  Therefore 
the  new  salesman  should  study  closely  to  see  what  the 
habits  of  trading  of  his  customers  are,  in  what  way  they 
want  to  be  waited  upon,  what  kinds  of  goods  they  have  been 
in  the  habit  of  buying,  and  so  on. 

Habit  is  the  result  of  experience  and  training.  There- 
fore every  community  and  every  kind  of  work  produces 
habits  peculiar  to  it.  Often  great  differences  are  found 
among  nations — often  among  provinces  or  states.  City  hab- 
its are  different  from  country  habits.  East  and  West  dif- 

49 


RETAIL    SELLING   AND    STORE    MANAGEMENT 

fer.  Farmers  differ  from  miners.  Both  have  ways  differing 
from  those  of  fishermen.  Women  may  have  habits  of 
trading  quite  different  from  men.  To  all  classes  the  sales- 
man must  attempt  to  sell  in  the  way  that  suits  them  best. 

Business  must  break  up  habit  when  it  seeks  to  find  a  mar- 
ket for  a  new  article,  or  an  article  of  a  new  quality.  It  is 
here,  where  habits  are  broken  and  irritation  is  likely  to  arise, 
that  the  salesman's  best  work  can  be  accomplished.  He  en- 
courages the  change,  but  allays  the  irritation  consequent 
upon  destroying  the  old  habits,  and  helps  to  start  and  build 
up  the  new  ones. 

All  successful  retail  stores  are  successful  because  a  great 
number  of  people  are  in  the  habit  of  trading  there.  "Good 
will,"  which  is  so  valuable  to  any  business,  is  nothing  but 
the  habit  of  a  great  number  of  people  to  favor  that  busi- 
ness. It  is  such  habits  that  the  salesman  helps  his  store 
to  build  among  his  customers.  In  fact,  a  customer  usually 
does  not  pay  profits  to  a  store  until  he  has  formed  the 
habit  of  coming  to  the  store.  The  first  sale  is  hardly  ever 
a  profit  maker  when  one  considers  the  advertising,  the  dis- 
play, and  selling  expense  necessary  to  get  first  orders. 
Wholesalers  and  manufacturers  have  a  saying  that  it  is  the 
"repeat  orders"  that  count.  The  same  is  true  in  a  retail 
store  in  most  communities. 

Imagination. — We  have  said  nothing  thus  far  about  im- 
agination and  reasoning.  Both  are  but  special  forms  and 
combinations  of  remembered  ideas.  What  we  imagine  is 
composed  entirely  of  parts  of  ideas  and  of  whole  ideas  al- 
ready in  the  brain.  Try  for  yourself,  and  see  how  hard  it  is 
to  think  of — to  imagine — anything  absolutely  new  or  differ- 
ent from  anything  you  have  ever  seen  or  experienced.  If 
you  think  you  have  succeeded,  just  analyze  the  image  in 
your  mind,  and  see  if  its  parts  are  not  made  up  of  parts 
of  other  old  ideas,  and  if  these  do  not  come  from  real  things. 
This  explanation  gives  us  a  valuable  lesson  on  how  so-called 

50 


HOW  INSTINCTS  AID  IN  SELLING 

originality  is  developed.  We  find  a  so-called  original  idea 
is  invariably  nothing  but  an  ingenious  combination  of  old 
ideas,  brought  together  by  one  who  has  the  power  to  re- 
call easily  and  the  power  to  combine. 

Reasoning". — Reasoning  is  but  the  comparison  of  ideas. 
The  usual  method  is  either  to  find  some  proposition  upon 
which  we  are  sure,  and  then  apply  that  to  new  or  unsure 
matters ;  or  to  compare  several  new  ideas  for  the  purpose 
of  finding  a  common  likeness  which  we  may  call  a  prin- 
ciple. 

Deductive  reasoning. — We  use  the  first  kind  of  reasoning 
when  we  say  to  ourselves,  "All  normal  mothers  want  nice 
things  for  their  children.  Mrs.  Brown  will  surely  want 
nice  things  for  her  children."  We  all  accept  the  first  prop- 
osition as  correct.  You,  as  a  salesman,  make  your  applica- 
tion of  that  proposition  to  a  certain  normal  mother,  Mrs. 
Brown.  This  reasoning  is  common  in  everyday  thinking. 
It  is  but  a  comparison  of  the  idea  of  "Mrs.  Brown"  with 
the  idea  of  "All  normal  mothers."  This  kind  of  reasoning 
is  called  deductive. 

Inductive  reasoning. — The  other  kind  of  reasoning  is 
used  when  some  customer  comes  in  and  asks  for  an  article 
that  is  not  in  stock:  followed  by  a  second,  and  a  third,  and 
several  more  customers  asking  for  the  same  article.  You 
compare  your  experiences  with  each  customer;  you  recall 
the  same  or  similar  ideas  received  from  each  one;  namely, 
a  want  for  an  article  not  in  stock.  You  reason  out  the  con- 
clusion that  the  article  is  in  strong  demand.  You  use  your 
conclusion  by  having  the  goods  ordered.  The  conclusion 
was  correct  if  the  customers  represented  classes  of  people 
and  not  individual  whims,  and  if  the  customers  were 
real  and  not  store  shoppers  sent  out  by  some  rival  store 
to  lead  you  into  investing  your  capital  in  an  unprofitable 
line. 

Both  kinds  of  reasoning  are  common  to  all  people  in 

51 


RETAIL    SELLING   AND    STORE    MANAGEMENT 

business.  Both  are  subject  to  error,  usually  from  jump- 
ing at  conclusions  without  sufficient  comparison. 

The  essentials  of  good  imagination  and  reasoning  are  a 
good  memory  and  an  active  mind.  The  first  can  be  trained, 
as  we  have  seen.  The  second  is  the  result  of  mental  exer- 
cise and  good  health. 

Summary. — Certain  facts  should  stand  out  clearly  as  a 
result  of  our  study  thus  far,  and  among  these  should  be  the 
following : 

1.  Every  idea  that  is  to  enter  the  mind  from  the  outside 
must  come  in  through  the  sense  nerves  to  the  brain.     Sell- 
ing is  a  process  of  getting  a  customer  to  accept  and  act 
upon  a  certain  set  of  ideas ;  therefore  the  work  of  the  sales- 
man must  be  to  present  material  that  is  suitable  to  the  senses 
of  the  customer  and  that  will  cause  the  ideas  desired. 

2.  Every  impression  that  enters  the  brain  and  reaches  the 
mind  leaves  some  kind  of  mark  or  indentation  in  the  brain 
tissue  that  remains  there  indefinitely.     To  recall  the  im- 
pression, the  mind  retraces  its  way  through  this  mark  much 
as  a  phonograph  reproducer  traces  its  way  over  the  indented 
wax  cylinder  record.     The  brain  tissue  is  a  storehouse  of 
records  of  past  impressions,  connected  by  pathways  formed 
by  the  mind  in  passing  from  one  to  another.    Every  new  im- 
pression coming  into  the  brain  is  connected  by  the  mind 
to  the  older  impressions;  in  fact  new  ideas  can  scarcely 
be  grasped  unless  they  can  be  connected  to  those  that  have 
already  been  in  the  mind.    The  problem  of  the  salesman  is 
to  present  his  ideas  to  the  customer  so  that  the  connections 
between  the  new  and  the  old  ideas  will  be  made  easily  in  the 
customer's  mind.    To  this  end  it  will  be  of  great  help  to  the 
salesman  to  know  something  of  the  past  experiences  of  the 
customer. 

3.  The  mind  of  a  person  travels  through  the  brain  and 
nerve  tissue  from  impression  to  impression  at  a  definite 
rate   of    speed,   which   may   be  different   for   everybody; 

52 


HOW  INSTINCTS  AID  IN  SELLING 

therefore,  in  the  presentation  of  ideas  or  impressions  to  a 
customer,  the  salesman  must  be  aware  that  they  can  have 
little  or  no  effect  unless  presented  at  about  the  same  rate  of 
speed  that  the  customer's  mind  can  grasp  them,  one  after 
the  other. 

4.  Every  impression  that  enters  the  mind  is  accompanied 
by  some  feeling  either  good  or  bad,  pleasing  or  painful, 
satisfactory  or  unsatisfactory.     The  mind  naturally  turns 
away  from  the  bad,  painful,  or  unsatisfactory  impression, 
and  turns  towards  the  good,  pleasing,  or  satisfactory.     Fa- 
vorable action  of  the  will  of  the  customer  can  only  be  ob- 
tained by  presenting  such  impressions  as  will  produce  good, 
pleasing,  or  satisfactory  feelings ;  hence,  the  salesman  must 
be  tactful  and  sympathetic  as  well  as  clear-cut  in  his  pres- 
entation of  ideas  and  in  showing  his  goods. 

5.  Whether  an  idea  that  enters  the  mind  of  a  person  shall 
be  accompanied  by  pleasing  and   satisfactory   feelings   or 
their  opposites,  depends  upon  the  following:  the  possibility 
of  the  ideas  being  used  to  bring  further  satisfaction;  pre- 
vious experience  with  similar  ideas,  and  their  results;  and 
the  natural  impulses  or  instincts  of  the  individual.    A  sales- 
man's presentation  appeals  if  possible  to  all  three — the  cus- 
tomer's future   satisfaction,   his   past  experience,   and  his 
natural  instincts. 

6.  Interest  in  preoccupation  of  the  mind  with  ideas  or 
impressions  that  are  pleasing  or  satisfactory  to  the  mind, 
and  is  caused  by  the  pleasure  or  satisfaction  derived  from 
those  ideas  or  impressions.    If  the  interest  concerns  any  ma- 
terial object  or  service  that  can  be  purchased  and,  therefore, 
enjoyed  continuously  or  repeatedly,  the  interest  naturally 
grows  into  a  desire  to  purchase,  or  to  own,  the  thing  or  the 
right  to  the  service.    The  salesman  must  seek  to  interest  the 
customer  in  the  facts  concerning  whatever  he  has  to  sell  in 
order  to  excite  the  desire  to  purchase  or  to  own  that  par- 
ticular thing. 

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RETAIL    SELLING   AND    STORE    MANAGEMENT 

7.  Every  impression  or  idea  that  enters  the  mind  tends 
to  express  itself  in  some  outward  manner.  Most  of  such 
expressions  are  controlled  by  the  average  person,  but  it  is 
upon  the  interpretation  of  such  expressions  as  show  them- 
selves that  the  salesman  judges  whether  or  not  he  is  present- 
ing the  right  kind  of  impressions  or  ideas.  To  read  a 
person's  thoughts  means  simply  to  interpret  what  that  per- 
son is  expressing  by  his  action,  appearance,  speech,  etc. 

These  seven  fundamental  facts  of  psychology  lie  at  the 
bottom  of  the  science  of  selling.  They  must  be  clearly 
understood  by  every  one  who  wishes  to  grasp  this  science. 
With  these  facts  as  a  basis  one  can  begin  to  understand  the 
reasons  for  the  success  of  good  salesmen,  as  well  as  the 
reasons  why  some  selling  and  advertising  methods  are  suc- 
cessful and  others  are  unsuccessful. 


CHAPTER   VI 
ATTRACTING   ATTENTION 

The  salesman's  service. — We  can  best  show  the  applica- 
tion of  psychology  to  selling  by  first  presenting  an  outline 
of  the  work  that  the  salesman  must  do.  Among  the  cus- 
tomers who  come  to  a  store  there  are  in  general,  first, 
those  who  have  clearly  in  mind  what  they  want  and  who 
come  to  the  store  to  get  it.  Secondly,  there  are  those  who 
know  their  wants,  but  do  not  know  exactly  what  will  supply 
them.  For  example,  a  person  of  this  second  class  may  want 
a  cold  cure,  a  hammer,  a  pair  of  shoes,  or  a  coat ;  but  he 
may  have  no  idea  as  to  what  particular  kind  would  serve 
him  most  satisfactorily.  Lastly,  there  is  a  class  that  we 
may  call  store  visitors  or  shoppers — those  drawn  in  through 
curiosity,  or  who  come  in  with  friends,  in  neither  case  in- 
tending to  purchase  anything. 

The  first  class  simply  need  some  one  to  wait  upon  them 
expeditiously  and  accurately.  The  second  class  need  the 
attention  of  a  salesman  who  can  properly  present  the  goods 
of  the  store  so  as  to  sell  what  will  give  the  customer  the 
best  satisfaction.  The  third  class,  with  which  we  may  also 
include  customers  who  have  already  purchased  all  that  they 
had  in  mind  to  get  when  they  entered  the  store,  require 
real  salesmanship.  The  work  of  the  store  in  connection 
with  this  third  class  of  customers  is  to  serve  them  as  fully 
as  possible  by  bringing  to  their  attention  desirable  goods, 
and,  if  the  attention  should  ripen  into  desire  to  own,  to 

55 


RETAIL    SELLING   AND    STORE    MANAGEMENT 

make  the  sale.  In  fact,  the  success  of  many  a  store  de- 
pends almost  wholly  upon  these  extra  sales,  for  the  ordi- 
nary sales  resulting  from  the  taking  of  orders  may  not  in 
themselves  bring  in  enough  profit  to  pay  the  expenses  of 
running  the  business.  If  done  rightly  (psychologically), 
as  we  shall  show,  customers  will  feel  pleased,  even  com- 
plimented, at  this  service.  At  its  best,  this  service  antici- 
pates the  customer's  wants  before  they  have  been  ex- 
pressed. This  saves  his  thought  and  energy  which  he 
might  afterwards  expend  in  coming  to  the  conclusion  to 
get  the  goods,  if  the  salesman  did  not  put  the  goods  before 
him  now  and  convince  him  that  he  wanted  them.  By  means 
of  this  service  plus  the  help  of  advertising,  which  is  but  a 
special  form  of  salesmanship,  people  learn  the  use  of  new 
foods,  different  makes  in  shoes  and  garments,  late  inventions 
in  tools,  and  so  on. 

We  shall  give  most  of  our  attention  to  the  kind  of  sales- 
manship required  by  the  third  class — those  who  have  not 
made  up  their  minds  to  buy. 

The  conduct  of  a  sale. — Suppose  a  lady  enters  your  de- 
partment (more  than  eighty  per  cent,  of  the  customers  in  the 
retail  trade  are  women)  and  comes  down  the  aisle  slowly 
without  any  apparent  objective  point  in  mind.  You  ap- 
proach her,  and  make  inquiry  as  to  how  you  may  be  of 
service  to  her.  She  replies  that  she  is  not  interested  par- 
ticularly in  anything,  and  that  she  is  just  looking  around, 
or  that  she  came  in  with  some  friend,  or  that  she  is  wait- 
ing for  some  one.  It  has  become  a  fixed  custom  in  this 
country  to  give  people  the  privilege  of  going  about  in  a 
store  without  buying.  This  was  something  unheard  of 
in  England  until  very  recently.  You  are  a  skillful,  we  shall 
say,  a  scientific  salesman.  You  accept  the  visitor's  expla- 
nation, and  extend  the  hearty  invitation,  which  is  a  policy  of 
your  house,  to  make  herself  at  home.  You  engage  her  in 
conversation  upon  some  point  that  you  are  sure  will  in- 

56 


ATTRACTING  ATTENTION 

terest  her,  and  artfully  call  her  attention  to  some  article 
of  new  design,  with  which,  you  judge,  she  may  not  be 
familiar,  but  with  which  you  think  she  might  be  pleased. 
She  examines  the  article  first  carelessly,  but  later,  under 
the  direction  of  the  right  suggestive  selling  talk,  with 
marked  signs  of  interest.  You  note  that  she  looks  for  the 
price  mark  or  inquires  the  price ;  and  you  begin  to  feel  that 
things  are  coming  out  fairly  well.  But  she  objects  to  the 
price.  You  answer  with  arguments,  showing  the  quality 
and  pointing  out  that  the  price  is  really  not  too  high;  and 
in  the  meantime  give  her  added  reasons  for  ownership,  and 
give  her  opportunity  to  gain  impressions  from  the  article 
through  her  eyes  and  hands.  She  wavers  a  moment;  you 
add  another  clinching  fact;  and  she  buys  the  article.  This 
is  real  salesmanship — not  to  sell  people  what  they  do  not 
want,  but  to  anticipate  their  wants  and  sell  them  now  what 
they  really  need,  what  they  will  be  highly  satisfied  with, 
and  what  they  will  probably  purchase  elsewhere  later  on 
if  you  do  not  sell  them  now. 

The  customer's  state  of  mind. — Let  us  consider  what 
took  place  psychologically  in  this  sale.  The  lady  who  came 
into  your  department  possessed  a  mind,  a  brain,  and  nerv- 
ous system,  with  its  way  of  working  very  similar  to  yours. 
But  the  content,  the  ideas  recorded  in  her  brain,  were  prob- 
ably very  different  from  yours.  Her  mind  traversed  the 
pathways  and  impressions  which  had  been  formed  in  her 
brain  by  her  past  experiences,  including  everything  she  had 
ever  heard,  seen,  and  done,  while  your  mind  traveled  along 
the  pathways  formed  in  your  brain.  But  since  you  are 
a  salesman,  you  are  constantly  turning  your  mind  in  the  di- 
rection of  other  people's  minds  so  that  you  may  learn  what 
other  people  think  and  how  they  think  it. 

Getting  the  customer's  attention. — The  customer  was 
thinking  her  own  thoughts,  and  was  interested  only  in  these, 
and  not  in  yours.  As  a  salesman,  it  was  your  work  to 

57 


RETAIL    SELLING   AND    STORE    MANAGEMENT 

break  in  on  her  path  of  thinking  and  introduce  some  im- 
pression that  would  cause  her  to  follow  the  line  of  thought 
that  you  wanted  her  to  follow.  In  other  words,  you  had 
to  get  her  attention.  This  was  the  first  step  in  the  sale. 

In  the  case  of  the  customer  who  comes  into  the  store 
knowing  just  what  she  wants,  attention  is  already  present. 
The  mind  is  already  engaged  in  a  line  of  thought  which 
should  result  in  that  final  idea  that  every  salesman  wants 
the  customer  to  express:  viz.,  "Yes,  I  will  take  the 
goods." 

Interest. — In  the  case  of  the  uncertain  customer,  however, 
you  had  to  get  the  attention.  But  more  than  that  was  neces- 
sary. She  might  have  given  the  object  only  a  moment's 
notice,  and  then  allowed  her  mind  to  retrace  its  old  track; 
so  you  immediately  began  to  hold  her  attention  to  the  ar- 
ticle by  telling  her  of  its  qualities  and  uses;  You  presented 
those  first  which  in  your  estimation  would  be  accepted 
favorably.  You  were  very  careful  to  avoid  antagonizing 
her  in  any  way.  You  watched  her  eyes  and  face  intently  to 
see  whether  she  was  becoming  pleased  or  bored  by  what 
you  were  telling.  You  watched  her  eyes  to  see  what  she 
seemed  interested  in  seeing,  and  you  told  her  about  those 
things  in  a  plain,  sensible  way.  Once  or  twice  you  may 
have  said  things  which  caused  her  face  to  cloud  a  little. 
You  noted  it  quickly  and  began  talking  on  other  points  at 
once.  As  ordinarily  expressed,  you  were  tactful.  Gradu- 
ally her  eyes  and  face  brightened.  Finally  you  noted  a 
real  look  of  interest.  This  was  the  second  step  in  the 
sale. 

Increasing  interest. — The  customer  began  now  to  ask 
questions  about  the  article.  Her  mind  was  working  in  the 
path  that  you  wanted  it  to  work  in.  Henceforth  it  was 
your  task  to  keep  her  in  this  line  of  thought  until  the  sale 
could  be  made.  So  whenever  her  mind  started  to  run  off  on 
some  tangent,  you  brought  it  back  to  the  goods ;  and  when 

58 


ATTRACTING  ATTENTION 

she  offered  some  objection  to  the  goods,  you  answered  the 
objections  so  fully  and  fairly  that  she  became  satisfied  and 
more  deeply  interested. 

Desire  and  action. — With  no  overpowering  objections 
left,  her  interest  naturally  became  strong  desire.  Her  in- 
stinct of  possession  had  been  set  to  work.  This  you  guided 
into  expression  and  action  by  stating  in  a  few  words  some 
of  the  article's  strongest  points,  and  possibly,  by  repeating 
in  different  form  those  arguments  that  seemed  to  have  great- 
est weight  during  the  early  part  of  the  sale.  Her  mind 
resolved  to  possess,  and  the  sale  was  made. 

The  steps  in  a  sale. — There  were,  then,  four  distinct 
psychological  steps  or  stages  in  this  sale.  These  were :  first, 
getting  the  attention  of  the  customer;  second,  intensifying 
the  attention  into  interest  in  the  article;  third,  ripening  the 
interest  into  desire;  and  fourth,  causing  the  desire  to  assert 
itself  by  inducing  the  customer  to  make  the  decision  to 
become  owner.  These  steps  are  found  in  every  complete 
sale.  In  the  case  of  the  first  class  of  store  visitors,  re- 
ferred to  on  a  previous  page,  some  external  force,  such  as 
the  store  advertising  in  the  newspapers  or  circulars,  or  some 
other  person  may  have  created  the  attention,  the  interest,  and 
even  the  desire  to  buy.  All  that  is  left  for  the  store  and 
its  salesmen  to  do  is  to  give  the  customer  what  she  wants 
and  to  receive  her  money  or  promise  to  pay.  In  the  second 
class  of  customers,  there  is  a  general  interest  and  readiness 
to  give  attention  upon  being  shown  the  goods.  In  their 
case,  too,  interest  and  attention  may  have  been  partly  built 
up  by  some  means  before  the  customer  entered  the  store. 
Possibly  a  single  line  of  advertising,  such  as  "Are  you 
going  to  paint  your  house  this  year?"  suggested  the  line 
of  thought  that  resulted  in  the  call  of  the  customer  at  the 
store  to  ask  to  see  samples  of  paint.  Possibly  a  window  dis- 
play caught  her  attention  and  brought  her  in. 

Jn  some  .cases  the  transition  from  one  step  in  the  sale  to 

59 


RETAIL    SELLING   AND    STORE    MANAGEMENT 

the  next  is  a  process  requiring  but  a  moment's  time;  in 
others,  it  takes  not  only  much  time,  but,  also,  great  force 
of  argument.  Life  insurance  salesmen  often  have  prospects 
whose  attention  and  interest  have  been  aroused,  and  who 
even  have  a  strong  desire  for  the  protection  offered,  but 
who  simply  hesitate  for  months  before  making  the  decision. 
These  transitions  between  steps,  this  "making  up  one's 
mind,"  is  one  of  the  most  interesting  studies  of  human 
nature  in  the  world.  There  is  no  place  where  it  can  be  stud- 
ied so  well  as  from  back  of  the  store  counter. 

Practical  illustrations. — Let  us  now  consider  some  of  the 
best  store  practice  in  the  light  of  our  study.  We  shall  find 
that  a  number  of  excellent  means  have  been  discovered 
and  devised  to  assist  in  getting  the  customer  through  each 
step  in  the  sale,  from  attracting  his  attention  to  obtaining 
his  decision.  Only  a  few  methods  can  be  given,  but  enough 
must  be  enumerated  to  show  the  salesman  just  how  he  can 
go  on  in  his  study  of  the  subject  with  special  reference 
to  his  own  selling  field.  Naturally  the  same  sort  of  de- 
vices for  getting  interest  will  not  work  equally  well  with  all 
sorts  of  customers,  or  in  all  sorts  of  retailing.  Our  brief 
study  of  psychology  should  have  made  clear  at  least  one 
thing,  and  that  is  the  absolute  necessity  of  treating  each 
customer,  let  us  not  say,  differently,  but  rather,  in  the  way 
most  suited  to  him.  This  means  that  we  must  make 
changes  in  our  selling  plans,  not  merely  for  the  sake  of  the 
changes,  but  for  the  purpose  of  fitting  them  to  the  individ- 
ual customer. 

Advertising. — Every  up-to-date  store  attempts  to  attract 
the  attention  of  possible  customers  in  a  number  of  ways. 
In  doing  this  the  work  of  salesmanship  is  extended  beyond 
the  bounds  of  individual  selling.  Advertising  is,  of  course, 
the  principal  means  by  which  a  store  seeks  to  get  the  at- 
tention of  the  public  to  what  it  has  to  offer.  It  may  be 
said  that  the  chief  end  of  advertising  is  to  attract  attention, 

60 


ATTRACTING  ATTENTION 

although  the  best  advertising  carries  many  people  over  from 
the  state  of  momentary  attention  into  interest,  desire,  and 
even  decision  to  purchase.  Mail-order  houses  depend  upon 
advertising  alone  to  sell  their  goods.  This  is  advertising 
raised  to  the  highest  power.  If  we  study  mail-order  adver- 
tising, we  shall  see  that  the  advertisements  are  intended  to 
carry  the  possible  customer  through  the  entire  four  stages. 
In  many  cases  this  is  very  cleverly  and  most  excellently  done. 
The  mail-order  advertising  man  must  be  an  expert  in  his 
profession.  He  must  be  a  salesman  with  a  full  knowledge 
of  how  sales  are  made.  It  will  pay  any  salesman  who  de- 
sires to  study  the  methods  of  selling  talk  used  by  others, 
to  read  carefully  the  advertising  done  by  these  experts. 
Average  retail  advertising,  however,  is  considered  fairly 
good  if  it  attracts  the  attention  and  arouses  interest,  and 
leaves  to  the  store  and  its  salesmen  the  work  of  getting  the 
customer's  mind  through  the  other  two  stages  of  a  sale. 

Window  display. — The  store  window  display  is  another 
very  powerful  factor  in  attracting  attention.  There  are 
few  people  who  can  say  that  they  have  not  been  stopped 
by  window  displays.  All  have  had  the  experience  of  being 
arrested  for  several  moments,  even  if  they  were  in  a  hurry. 
Many  of  these  persons  were  afterwards  drawn  by  interest 
into  the  store  to  see  the  goods,  and  to  purchase.  The  man- 
ager who  does  not  have  effective  displays  prepared  for 
his  windows  is  only  a  storekeeper,  not  a  merchant  or  a 
salesman. 

Store  display. — Another  means  of  getting  the  attention 
is  by  proper  inside  store  displays.  You  cannot  tell  all 
about  all  of  your  goods  in  expensive  newspaper  space,  nor 
even  in  catalogs;  nor  can  you  put  all  of  your  goods  in  the 
windows.  There  are  many  articles  that  will  be  purchased 
by  the  customer  after  coming  into  the  store  if  she  is  re- 
minded that  they  are  for  sale  by  having  the  goods  attrac- 
tively displayed  where  they  can  be  seen. 

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RETAIL    SELLING   AND    STORE    MANAGEMENT 

Advertising  an  aid  to  selling. — As  advertising,  window 
dressing,  and  store  display  are  subjects  of  such  importance 
that  they  should  be  treated  of  separately  and  in  detail,  no 
further  mention  of  them  will  be  made  at  this  point  except 
to  indicate  their  purposes  in  the  business,  and  to  show  that 
they  are  intended  as  aids  to  the  salesmen ;  they  capture  the 
attention,  at  least,  and  arouse  the  interest,  if  possible,  of 
many  more  persons  than  the  salesman  in  his  department 
could  ever  reach  with  his  own  efforts  alone.  The  sales- 
man's work  is  simplified  by  the  fact  that  often  much  of  the 
real  selling  has  already  taken  place  before  the  customer 
faces  him.  On  the  other  hand,  more  intelligent  salesman- 
ship is  now  required  than  ever  before,  since  not  only  must 
the  salesman  carry  out  his  own  complete  sales,  but  he  must 
also  know  how  to  co-operate  in  the  best  way  with,  and  make 
use  of,  the  services  of  these  special  aids  in  salesmanship. 
This  calls  for  a  knowledge  of  principles  of  window-trim- 
ming and  advertising,  although  ability  in  the  arts  of  win- 
dow-trimming and  advertising  is  not  essential  for  the  sales- 
man. 

How  to  get  attention.— Let  us  consider  the  means,  for 
which  the  salesman  is  responsible,  and  which  he  has  at  hand, 
to  get  the  attention  of  the  customer  who  has  come  into  his 
store.  There  is,  first  of  all,  the  salesman  himself.  We 
have  already  considered  certain  attributes  which  he,  in 
common  with  other  business  men,  should  possess.  Here 
let  us  consider  those  which  apply  particularly  to  sales- 
manship. 

Salesman's  appearance. — In  getting  the  favorable  atten- 
tion of  most  customers,  the  salesman's  appearance  counts 
for  a  great  deal.  A  good  form  or  physique,  well  balanced, 
its  action  well  under  control,  is  always  pleasing;  and  the 
opposite  is  often  displeasing.  Shuffling  feet,  stooping 
shoulders,  hanging  head,  drooping  mouth,  lax  motions  and 
positions,  while  probably  not  consciously  distasteful  to 

62 


ATTRACTING  ATTENTION 

many,  are  nevertheless  not  pleasing,  and  are  positively  dis- 
tracting to  a  few.  Every  salesman  should  and  can  cultivate 
good  physical  bearing.  He  needs  to  be  erect  (not  so  erect 
as  to  bend  backward),  with  head  up  so  that  the  eye  can  look 
out  on  a  level  without  turning  up ;  with  firm,  quick,  elastic 
step.  He  needs  a  deep,  full  chest  not  only  for  the  sake  of  ap- 
pearance, but  for  the  sake  of  health  as  well.  People  with 
large,  deep  breathing  capacity  resist  disease  and  do  not  tire 
easily.  If  a  year  of  military  service  can  straighten  out  most 
men  so  that  they  will  have  most  of  these  qualities,  any  indi- 
vidual can  do  the  same  thing  for  himself  by  simply  making 
up  his  mind,  and  keeping  it  made  up,  to  practice  for  im- 
provement in  the  characteristics  in  which  he  is  deficient. 
You  can  afford  to  build  up  good  physique  and  good  physical 
bearing.  It  will  pay  you  well. 

Cleanliness. — The  salesman  must  be  scrupulous  as  to 
cleanliness.  Better  too  much  of  this,  by  far,  than  too  little. 
This  is  a  principle  that  should  be  applied  generally  to  per- 
son, hair,  nails,  nose,  teeth,  linen,  clothing,  shoes,  stock, 
counters,  fixtures,  floors,  and  the  entire  store  building.  It 
may  -be  said  that  many  customers  do  not  care  about  these 
things.  But  some  do.  And  hardly  any  of  the  careless  ones 
will  be  anything  but  pleased  to  see  the  immaculately  clean 
store,  goods,  and  salesmen.  Whatever  the  changes  in  fash- 
ions, there  never  will  come  a  vogue  in  musty  smell,  dust-dye, 
and  fly  polka-dot  designs.  The  policy  of  the  store  and  its 
salespeople  in  these  respects  should  be  to  aim  to  keep  the 
store  in  the  condition  that  will  be  satisfying  to  the  most  care- 
ful, exacting  housekeeper  in  the  city.  If  you  can  get  and 
hold  her  favorable  attention,  so  that  she  will  not  be  ever 
so  gently  shocked  by  any  uncleanliness,  you  can  be  sure 
that  you  are  not  going  to  have  trouble  upon  this  point  with 
anyone  else. 

What  customers  do  not  like. — There  are  a  number  of 
other  points  the  psychology  of  which  needs  to  be  studied 

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RETAIL    SELLING   AND    STORE    MANAGEMENT 

by  the  salesman.  Many  people  do  not  like  to  see  gum 
chewing  or  tobacco  chewing,  nor  do  they  like  tobacco  smoke. 
The  salesman  who  is  addicted  to  these  things  will  likely 
lose  the  customer  who  dislikes  them.  Bad  breath  is  fatal 
to  a  salesman's  success.  Do  not  guess  about  your  breath. 
Get  some  frank  friend  to  tell  you  if  your  breath  is  all  right. 
If  bad,  cure  it.  This  can  be  done ;  your  selling  will  improve, 
and  so  will  your  health.  Customers  have  come  away  from 
some  stores,  vowing  that  they  would  never  go  there  again, 
and  their  reason  when  finally  discovered  was  that  so  many 
saleswomen  on  every  side  were  constantly  "fixing"  their 
hair.  One  man  customer  in  such  a  store  said  he  felt  as  if 
he  ought  to  retire  from  the  room,  as  it  was  evidently  a 
ladies'  dressing-room.  Any  special  mannerisms  of  action 
or  speech  are  dangerous,  and  make  it  hard, to  get  the  right 
kind  of  attention. 

Unfavorable  attention. — The  aim  of  selling  is  to  get 
favorable  attention  for  the  goods,  and  not  for  anything 
else.  The  overdressed  salesman,  striking  jewelry,  unusual 
coiffure,  all  get  attention,  but  the  attention  all  goes  to  the 
person  and  not  to  the  goods.  A  salesman  is  not  trying 
to  sell  himself.  His  appearance,  dress,  manner,  and  even 
his  voice  and  speech  should  be  such  as  to  be  unconsciously 
pleasing  to  the  customer,  but  to  attract  no  mental  comment 
whatever. 

Business  harmony. — The  business  of  the  store  is  to  sell 
goods,  and  everything  in  the  store  must  be  in  keeping  with 
this  aim.  The  more  thoroughly  the  surroundings  and  the 
salesmanship  harmonize  and  blend  with  the  impressions 
made  by  the  goods,  the  better  it  is  for  the  business.  The 
most  successful  salesmen  are  those  who  most  fully  live  up 
to  this  principle.  You  advertise,  you  appeal,  you  suggest, 
you  make  statements,  but  always  about  your  goods,  and  not 
about  yourself. 

Dress. — In  keeping  with   these   principles   the   salesman 


ATTRACTING  ATTENTION 

needs  to  be  well  dressed  for  his  work.  Dress  should  be 
neat,  in  good  order,  and  becoming.  In  many  establishments 
dress  has  become  a  vital  problem,  and  one  that  is  often 
difficult  to  handle.  Most  large  department  stores  require 
their  saleswomen  to  dress  in  a  uniform,  of,  say,  black 
skirt  and  black  shirtwaist  with  white  neckwear  during  the 
six  colder  months  of  the  year,  and  black  skirt  and  white 
shirtwaist  during  the  six  warmer  months.  This,  it  has  been 
found,  is  the  most  satisfactory  solution  of  the  problem, 
although  there  is  just  a  single  item  of  undesirability  about 
this,  and  that  is  the  likelihood  of  the  uniform's  drawing 
some  attention  to  itself.  There  are  few  salesladies  who  do 
not  look  becoming  in  black  and  white,  if  the  costume  is 
neatly  made.  Its  sensibleness  appeals  to  nearly  everyone. 
A  business  should  look  prosperous,  and  so  should  its  sales- 
people. 

Voice  and  speech. — As  already  suggested,  the  voice  and 
speech  of  a  salesman  are  highly  important.  A  good  voice 
may  be  cultivated  by  anyone  who  has  not  the  handi- 
cap of  physical  defects  in  his  vocal  organs.  A  sales- 
man should  try  to  pitch  his  voice  in  an  easy  speaking,  natu- 
ral, average  key,  and  to  speak  very  clearly  and  distinctly, 
but  without  any  mannerisms  or  effort.  If  you  cannot  get 
some  capable,  frank  friend  to  tell  you  of  your  faults  of 
speech,  just  shut  yourself  into  a  room  alone.  Begin  talk- 
ing to  yourself  in  various  keys,  and  in  different  ways,  and 
try  to  make  permanent  the  keys  and  ways  that  seem  best 
to  you. 

It  is  a  failing  to  permit  business  language  to  grow  so 
flat  and  confused  that  a  stranger  has  difficulty  in  under- 
standing it.  Look  out  for  such  little  things;  avoid  slang; 
use  the  best  English  you  can;  make  your  words  simple, 
plain,  and  short.  Know  what  you  want  to  say  before 
you  say  it,  and  then  say  that  and  no  more.  Never  speak 
affectedly  like  an  actor  or  actress.  Never  act.  Be  real. 

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RETAIL    SELLING   AND    STORE    MANAGEMENT 

Selling  is  real.  Your  desire  to  sell  should  be  real.  Be 
in  earnest.  These  are  good  rules,  which  every  salesman 
should  make  a  part  of  himself. 

Instinctive  attention. — In  continuing  the  study  of  the 
best  conditions  for  obtaining  a  customer's  attention,  we  may 
note  that  there  are  certain  things  that  attract  the  attention 
of  most  people  instinctively.  In  the  previous  section  we 
described  some  of  the  instincts  briefly.  Appeals  made  to  in- 
stincts usually  get  attention.  Things  in  motion  are  much 
more  likely  to  attract  attention  than  things  that  are  still, 
and  living  things  have  more  attraction  than  inanimate  ob- 
jects. In  a  similar  way,  certain  color  combinations  and  form 
arrangements  are  more  successful  in  catching  the  eye  than 
others.  What  these  are  we  shall  consider  under  the  sub- 
jects of  advertising  and  window  and  store  display. 

The  salesman's  approach. — In  regard  to  the  approach 
that  the  salesman  makes  to  the  visitor,  it  is  clear  that  he 
should  walk  briskly  forward  to  meet  her.  That  action  will 
draw  attention,  and  if  appearance  and  manner  are  not  ob- 
jectionable, the  possible  customer  will  not  only  be  read} 
to  listen  but  also  to  be  open-minded  to  any  suggestion  the 
salesman  may  have  to  offer ;  that  is  to  say,  she  will  be  in  an 
expectant  attitude. 

Salesman's  manner. — Now,  if  to  a  good  appearance  the 
salesman  adds  a  pleasing  manner,  the  first  impression — 
that  most  valuable  of  items — will  be  good.  Some  sales- 
people greet  the  customer  with  a  smile.  That  is  well,  if  the 
smile  is  real,  and  grows  out  of  a  pleasure  that  the  sales- 
man feels  in  having  the  opportunity  to  serve  a  customer. 
A  slight  smile  at  greeting  gives  the  impression  that  you  are 
glad  to  see  the  customer.  Cultivate  it,  but  don't  grin. 

Salesman's  eyes. — The  salesman's  eyes  should  express  in- 
telligent interest  in  the  customer.  A  stare  expresses  curi- 
osity but  not  interest.  Do  not  stare.  Any  salesman  who 

66 


ATTRACTING  ATTENTION 

is  really  anxious  to  serve  the  customer  will  show  such  desire 
by  a  live  expression.  An  expression  of  willingness  to  serve 
warms  the  heart  of  most  customers,  where  a  stare  chills. 
Dull  eyes  do  not  sell  goods. 

Where  there  are  several  salesmen  at  liberty,  only  one 
should  pay  any  attention  to  the  customer,  and  that  one 
should  be  the  one  who  is  to  serve  her.  It  is  disconcerting 
to  come  into  a  store  and  to  see  several  pairs  of  eyes,  par- 
ticularly salespeople's  eyes,  turned  toward  you.  To  have 
more  than  one  salesman  trying  to  sell  a  customer  is  likely 
to  impress  the  customer  with  the  idea  that  the  store  is  too 
eager  to  get  her  money. 

It  has  been  the  experience  of  everyone  to  go  into  a  store 
for  certain  goods,  and  to  be  met  by  some  "order-taker"  with 
a  languid  look  in  his  eye  and  with  all  the  indications  of  be- 
ing bored.  This  sort  of  thing  is  enjoyed  by  none.  When 
met  by  a  bored  salesman,  some  people  do  not  even  buy 
what  they  came  in  for;  many  others  buy  only  what  they 
want  as  quickly  as  they  can  and  make  for  the  door;  and 
some  never  come  back. 

Forms  of  address. — Stereotyped  forms  are  bad  in  dealing 
with  human  material,  but  none  are  worse  than  the  open- 
ing expression  frequently  used  by   salesmen.     What  one 
usually   hears   is,   "Something?"     "What  do   you    want?" 
"Do  you  want   something?"     "What   will   it   be?"     "Do 
you  wish  to  be  waited  on  ?"  and  so  on,  in  various  tired,  list- 
less tones.     Much  better  forms  of  address,   and  entirely 
proper  under  all  circumstances,  are  the  following : 
"In  what  way  may  I  serve  you,  Madam?" 
"May  I  help  you,  Sir,  to  find  what  you  want?" 
"May  I  assist  you  in  some  way?" 
"What  may  I  show  you  to-day  ?" 
"Is  there  anything  that  I  can  show  you?" 
Do  not  memorize  these  forms,  but  study  the  spirit  which 
they  express.     Catch   that  spirit,   and  then   express  it  in 


RETAIL    SELLING   AND    STORE    MANAGEMENT 

your  own  way,  but  be  careful  to  observe  the  best  polite 
usages  as  to  form.  As  an  example  of  usage — "Madam"  is 
better  form  than  "Lady" ;  "Sir"  is  better  form  than  "Mis- 
ter."  Study  the  meaning  of  your  expressions  from  all  pos- 
sible points  of  view.  Study  your  methods  of  saying  the 
words,  and  then  follow  in  practice  that  which  seems  best 
and  that  which  seems  to  work  best. 

Know  the  names  of  customers. — If  a  salesman  knows  the 
name  of  the  customer,  a  warm  friendly  salutation  in  which 
the  name  is  used  is  almost  a  certain  means  of  getting  the 
customer's  full  attention.  What  you  have  to  offer  next 
will  get  a  hearing.  Whatever  your  position,  in  however 
large  or  small  a  city,  it  is  well  to  begin  at  once  to  remem- 
ber the  names  of  people  so  that  you  may  know  them  when 
they  call  at  your  store.  The  salesman  who  knows  many 
people  is  worth  much  more  than  one  who  does  not — other 
things  being  equal. 

What  to  do  next. — What  to  do  after  the  opening  ad- 
dress will  depend  entirely  upon  what  course  the  customer 
takes.  If  she  is  interested  in  any  article,  she  will  prob- 
ably mention  it.  You  can  at  once  show  her  what  she 
wants  to  see,  or  direct  her  to  the  place  where  it  can  be 
seen.  If  the  goods  are  not  in  your  department,  and  you 
find  it  impossible  to  go  with  the  customer  to  find  them, 
your  directions  should  be  very  carefully  and  fully  made. 
This  is  an  opportunity  to  make  a  good  impression  upon 
the  customer. 

Giving  directions. — It  must  be  remembered  that  the  cus- 
tomer may  not  know  anything  about  store  departments  or 
names  of  parts  of  the  building.  Where  there  are  many 
foreign-born  people,  this  problem  is  indeed  real.  You  will 
find  those  who  do  not  know  what  the  word  "basement" 
means,  or  what  "third  story"  means.  There  are  still  num- 
bers of  people  who  know  nothing  about  an  elevator.  The 
salesman  will  never  take  any  chances  of  being  misunder- 

68 


ATTRACTING  ATTENTION 

stood.  He  will  give  clear,  intelligent,  kindly  answers  to 
the  inquiries  made  of  him. 

Suggestion  in  getting  attention. — After  the  customer 
has  been  greeted  by  the  salesman,  if  she  replies  that  she 
does  not  care  for  anything,  she  should  not  be  urged  to  buy. 
That  would  be  a  form  of  hold-up.  The  salesman  should 
try  a  suggestion  or  two.  In  the  meantime  the  salesman 
has  watched  the  eyes  of  the  customer,  and  he  remembers 
what  caught  her  eye  on  either  side  of  the  aisle  before  he 
addressed  her.  He  may  offer  to  get,  and  to  show  her, 
some  of  these  objects.  Or,  he  may  reason  from  such  evi- 
dence as  she  presents  in  clothes,  fashion,  age,  amount  of 
care  depicted  in  her  face,  tone  of  her  voice,  her  speech,  and 
other  things,  what  her  place  in  life  is,  and  what  might 
appeal  to  her.  From  this  he  might  simply  contrive  to  have 
her  see  goods  that  probably  would  be  such  as  she  would 
want.  If  the  customer's  look  indicated  any  glow  of  in- 
terest, the  salesman  might  begin  a  description  calculated  to 
heighten  this  interest.  The  goods  presented  might  sug- 
gest to  the  customer  wants  that  she  did  not  think  of  be- 
fore. They  might  suggest  satisfactions  to  her  of  which 
she  had  never  before  known. 

Transferring  attention. — When  you  have  a  customer 
who  has  just  made  a  purchase,  and  you  desire  her  attention 
to  other  goods,  a  tactful  address  somewhat  as  follows  might 
be  used  successfully:  "We  have  just  received  a  new  in- 
voice of  flour,  Mrs.  A.,  which  is  pronounced  excellent;  and 
we  should  be  pleased  if  you,  whose  good  bread  is  so 
famous,  would  give  us  your  opinion  of  it."  Or:  "We 
have  a  new  line  of  silks,  which  we  think  very  pretty  and 
cheap.  We  should  be  glad  to  have  you  look  them  over  and 
tell  us  what  you  think  of  them." 

The  salesman's  guides. — How  to  get  the  attention  of  a 
customer  is  a  problem  for  the  salesman's  ingenuity.  In 
most  cases,  salesmen,  even  the  best  of  them,  stumble  toward 

69 


RETAIL   SELLING   AND    STORE   MANAGEMENT 

attention,  and  then  trust  to  quick  use  of  wits  to  retreat  or 
push  on  according  to  the  impression  made  on  the  customer. 
The  customer's  eye,  her  position,  her  facial  expression, 
what  she  says,  are  the  guides  to  the  quick  and  knowing 
eyes  and  mind  of  the  salesman.  A  good  salesman  depends 
for  encouragement  almost  entirely  upon  such  unsolicited  ex- 
pressions. He  asks  but  few.  questions,  and  then  only  those 
that  are  absolutely  necessary.  He  begins  to  show  goods 
as  soon  as  possible.  He  certainly  does  not  begin  with  that 
most  untactful  question:  "What  price  did  you  want  to 
pay?"  or  "How  high  do  you  want  to  go?" 

Non-attentive  customers. — When  a  customer  does  not 
give  her  attention  at  all,  and  does  not  leave,  the  salesman 
will  vary  the  usual  selling  talk  to  try  to  capture  the  atten- 
tion. There  are  various  ways  to  do  this,  all  based  on  psy- 
chology. One  is  to  stop  talking  and  to  discontinue  all  move- 
ment abruptly.  Quiet  waiting  frequently  has  the  desired 
effect.  Sometimes  looking  the  customer  squarely  in  the  eye, 
and  transferring  your  look  alternately  from  her  eyes  to  the 
goods  will  tend  to  draw  her  eyes  to  the  part  of  the  goods 
which  you  are  describing.  Some  salesmen  ask  for  atten- 
tion and  sometimes  get  it  in  that  way.  This  is  effective 
only  with  absent-minded  people,  however,  who  do  not  mean 
to  be  inattentive.  For  the  mind-wanderer  some  clever 
trick,  unusual  expression,  or  change  from  the  ordinary  may 
be  needed  to  bring  back  her  attention  to  your  goods. 


CHAPTER   VII 
AROUSING  INTEREST,  DESIRE,  AND  DETERMINATION 

Getting  customers  interested,— After  the  attention  of 
the  customer  has  been  obtained,  the  next  step  in  a  sale  is 
to  transform  the  attention  into  warm  interest.  In  other 
words,  the  salesman  desires  to  center  the  mind  of  the 
customer  on  the  article  for  sale.  The  salesman  wants  the 
customer  to  give  careful  thought  to  the  impressions  that 
he  seeks  to  make.  He  also  desires  to  make  all  feeling  in 
the  customer's  mind  regarding  these  impressions  pleasant 
or  favorable.  The  attention  must  be  keyed  up,  and  all 
objectionable  ideas  must  be  removed  as  fast  as  they  ap- 
pear. 

Methods. — In  order  to  get  the  customer  interested,  every 
salesman  follows  certain  psychological  principles.  He 
makes  his  appeals  to  the  senses — to  hearing  by  talking,  to 
sight  by  showing  the  goods,  to  touch  by  letting  the  cus- 
tomer handle  them,  and  so  on.  He  appeals  to  the  cus- 
tomer's imagination  by  leading  her  to  think  how  the  goods 
will  look  in  use,  how  they  will  wear,  how  they  will  be 
appreciated  by  others,  how  effective  and  how  useful  they 
will  be;  and  he  appeals  to  her  reason  by  having  her  hold 
and  compare  both  the  ideas  of  quality  and  of  price  in  mind 
at  the  same  time,  and  by  the  tactful  dislodging  of  any  objec- 
tions that  may  arise.  He  follows  one  idea  with  another  so 
timed  as  to  approximate  the  rate  at  which  her  mind  moves 
from  idea  to  idea — say  from  one-half  of  a  second  to  three 


RETAIL    SELLING   AND    STORE    MANAGEMENT 

seconds  for  each  idea.  He  is  careful  that  each  idea  is  made 
simple,  clear-cut,  easy  for  her  to  get,  and  deeply  impressed, 
before  going  to  the  next. 

Tact. — He  continues  to  watch  her  eyes  and  facial  expres- 
sions for  tendencies  of  dislike  or  displeasure.  He  shifts 
his  selling  talk  in  accordance  with  what  he  learns  in  this 
way.  He  tries  to  take  her  point  of  view,  to  select  from  his 
goods  what  will  give  her  the  most  satisfaction.  He  is  more 
anxious  to  please  her  than  he  is  to  sell  his  goods.  But  he 
hopes  to  have  her  pleased  with  his  goods. 

Get  customer  to  say  "yes." — To  make  sure  that  he  is 
on  the  right  track  the  salesman  invites  the  customer  to 
express  her  opinion  of  the  goods,  but  he  also  endeavors  to 
present  goods  and  arguments  that  will  bring  favorable  ex- 
pressions. Some  salesmen  try  to  get  their  customers  into 
what  we  may  call  a  "yes-saying"  attitude  of  mind.  They 
start  in  by  making  remarks  that  they  are  sure  will  bring 
an  affirmative  response,  a  "yes,"  or  an  affirmative  nod  of 
the  head.  These  are  followed  by  other  remarks  more 
directly  related  to  qualities  of  the  goods,  and  all  eliciting 
"yes"  from  the  customer.  The  customer  thus  gets  into  a 
favorable,  affirmative  state  of  mind.  This  is  nearly  always 
pleasurable,  and  the  final  decision  to  buy  comes  much  more 
easily  than  when  the  customer  has  been  given  the  chance, 
if  not  the  suggestion,  to  make  objections  and  negations 
about  the  goods.  When  these  have  entered  the  mind,  they 
also  make  impressions,  and  they  are  likely  to  stay  there  in 
modified  form,  even  if  completely  answered  by  the  logic  of 
the  salesman.  The  customer  is  never  so  sure  that  the  goods 
are  the  best  for  her  as  when  she  has  never  had  a  thought 
of  any  undesirability  about  the  goods  before  the  sale  was 
closed.  Anyone  who  will  try  this  will  readily  see  that  after 
he  has  said  "yes,"  has  thought  and  has  given  it  emphatic 
physical  expression,  he  does  not  readily  change  right  about 
and  take  a  negative  attitude. 

72 


INTEREST,    DESIRE,   AND   DETERMINATION 

Anticipate  objections. — The  salesman  answers  as  many 
objections  as  possible  before  they  are  made.  He  does  so 
in  this  way :  he  states  the  qualities  and  uses  of  the  goods  so 
clearly  and  so  completely  as  to  cover  the  objection  if  made, 
but  he  does  not  suggest  any  thought  of  the  objection  itself. 
He  prevents  the  objection  from  being  raised,  by  the  fullness 
of  his  descriptions.  If  objections  are  raised  by  the  cus- 
tomer, he  answers  them  fully  and  frankly.  He  does  not 
beat  about  the  bush  in  this,  for  to  do  so  would  arouse 
suspicion  as  to  his  intent  to  be  perfectly  square. 

Frankness. — A  salesman  must  tell  the  truth.  If  an  em- 
ployer expects  him  to  lie,  he  owes  it  to  himself  to  find  work 
elsewhere.  A  salesman  should  always  be  frank,  but 
this  does  not  mean  that  he  should  describe  his  goods  as 
follows : 

"Here  is  a  piece  of  goods  that  is  so  coarse  that  you  can 
shoot  peas  through  it,  and  all  cotton  at  that,  although  it  is 
marked  half  wool.  It  will  fade  at  the  first  wearing.  How 
many  yards  shall  I  tear  off  for  you?" 

Nor  should  he  follow  the  example  of  the  grocery  clerk, 
who  said  to  his  employer  in  the  presence  of  a  customer  who 
had  bought  some  prunes :  "You  must  be  glad  to  sell  another 
pound  of  those  wormy  old  prunes.  They'll  soon  be  all 
gone." 

These  cases  represent  frankness  that  is  destructive.  The 
real  salesman  could  admit  all  the  bad  qualities  of  the  cloth 
described  above,  but  if  the  description  were  accompanied  by 
a  statement  of  the  purposes  or  uses  of  the  cloth,  he  might 
still  make  a  sale  when  offering  the  goods  to  the  right  person, 
the  one  for  whom  the  goods  were  made. 

The  second  illustration  is  a  type  of  what  may  be  called 
brutal  frankness.  Both  grocer  and  his  clerk  were  in  the 
wrong.  There  is  a  maxim  among  business  men — "Don't 
knock."  It  has  psychological  significance.  The  affirmative 
side,  and  not  the  negative,  is  the  one  that  needs  attention. 

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RETAIL    SELLING   AND    STORE    MANAGEMENT 

Influence  of  knowledge. — In  holding  and  building  up  the 
interest  of  the  customer,  it  is  clear  that  the  salesman  who 
knows  his  goods  thoroughly  and  speaks  with  the  authority 
of  one  who  knows,  has  a  great  advantage  over  the  one 
who  is  not  so  thoroughly  informed.  Indecision  on  a  sales- 
man's part  is  always  likely  to  break  a  favorable  chain  of 
thought  in  the  customer's  mind.  The  indecision  of  the 
salesman  is  communicated  to  the  customer,  and  the  sale  is 
lost.  All  people  listen  attentively  and  respectfully  to  the 
recognized  authority,  even  if  they  do  not  need  what  he 
has  to  offer.  It  pays  to  build  up  a  reputation  for  expert 
knowledge  as  well  as  for  absolutely  square  dealing  in 
business. 

Fixing  the  attention. — The  salesman  attempts  to  fix  his 
conditions  so  as  to  eliminate  all  distractions  that  are  likely 
to  claim  any  of  the  customer's  attention.  Wherever  and 
whenever  possible  he  asks  her  to  sit  down.  None  of  the 
other  salesmen  in  the  vicinity  are  supposed  to  have  any 
interest  in  the  transaction  whatever.  Disagreeable  noises, 
smoke,  dust,  and  odor  all  detract  from  the  possibility  of 
making  sales.  Above  all,  the  salesman  engages  the  cus- 
tomer's entire  attention  by  talking  directly  to  her,  in  a  clear 
tone  of  voice,  but  just  loud  enough  to  be  heard  distinctly 
by  the  customer.  In  return,  he  pays  the  closest  attention  to 
what  she  says.  He  yields  to  and  appreciates  her  point  of 
view.  He  is  sympathetic,  and  he  never  dictates.  What  he 
says  as  an  authority  is  not  stated  in  the  voice  of  a  military 
commander.  He  relies  upon  the  importance  of  his  ideas 
to  give  the  right  impression,  rather  than  upon  importance 
in  tone  and  manner  of  speech.  He  gives  his  judgment  only 
when  it  is  asked  for.  The  regular  selling  talk  is  made  up 
of  facts,  with  the  assumption  that  the  customer  will  judge 
for  herself.  But  with  all  his  quietness  of  voice  and  manner, 
the  real  salesman  is  more  anxious  to  please  than  to  sell,  and 
for  that  reason  he  is  successful  in  selling. 

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INTEREST,   DESIRE,   AND  DETERMINATION 

Humor  not  permissible. — Joking,  funny  stories,  humor 
of  any  kind  is  dangerous  in  selling.  Business  is  serious, 
and  when  people  are  considering  parting  with  their  good, 
hard-earned  dollars,  they  are  usually  not  in  the  mood  to 
be  joked  with,  even  though  they  joke  and  smile  themselves. 
The  professional  salesman  has  a  dignity  which,  though  it 
leads  him  to  appreciate  the  humor  brought  in  by  the  cus- 
tomer, does  not  lead  him  into  the  mistake  of  displaying  any 
of  his  own  amateurish  attempts  in  that  direction.  The  im- 
pressions of  truth,  quality,  and  efficiency  are  best  conveyed 
by  earnest,  interested  speech  and  appearance.  Then,  and 
then  only,  the  words  ring  true. 

Illustration. — Before  passing  to  some  more  concrete  illus- 
trations of  the  methods  of  interesting  customers,  let  us 
give  a  moment's  attention  to  a  possible  situation.  The  fol- 
lowing is  copied  from  some  recent  advertising.  It  illus- 
trates excellent  work  on  the  part  of  the  saleswoman  in 
getting  attention  not  only  for  the  article  wanted  by  the 
customer,  but  also  for  other  things  that  she  had  planned  to 
buy  elsewhere.  It  also  shows  great  ability  in  holding  the 
customer's  interest: 

Clerk :  "Good  morning,  Mrs.  Henderson ;  you  are  bright 
and  early.  What  time  did  you  leave  home?" 

Mrs.  H. :  "We  started  at  5  o'clock ;  had  a  load  of  onions 
and  got  them  shipped  on  the  7  o'clock  freight." 

Clerk:    "What  can  I  do  for  you  this  morning?" 

Mrs.  H. :  "Oh !  I  don't  know.  I  need  a  pair  of  kid 
gloves,  and  some  French  concern  sent  me  a  little  book  about 
the  Simmons  LaForce  Kid  Gloves,  and  it  said  that  you  sold 
them.  I  want  to  match  this  sample." 

Clerk:    "Oh,  yes!    What  size?" 

Mrs.  H. :  "Size  6J.  I  always  like  my  gloves  com- 
fortable." 

Clerk :  "I  see ;  the  LaForce,  befog  French  kid  and  made 

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RETAIL    SELLING   AND    STORE    MANAGEMENT 

in  France,  are  sized  in  French  sizes,  so  I'll  measure  your 
hand  and  see  what  will  fit  you." 

Mrs.  H. :   'That's  all  right,  but  I  know  my  size." 

Clerk  (measuring  her  hand):  "Yes!  Your  number  is 
D,  and  I'll  put  them  on  for  you." 

Mrs.  H. :  "Well,  I'm  in  a  great  hurry,  and  have  to  meet 
my  husband,  so  I'll  not  bother  you ;  I  can  put  'em  on  just 
as  well  at  home.  I  don't  want  to  wear  'em  to-day." 

Clerk :  "Oh,  it  won't  take  long ;  and  you  know  we  war- 
rant them  when  they  are  tried  on  here,  but  we  dont  guarantee 
kid  gloves  unless  fitted;  besides,  I  haven't  seen  you  in  a 
long  time,  and  want  to  have  a  minute's  visit  with  you." 
(Clerk  all  the  time  being  busy  stretching  and  powdering  the 
gloves.) 

Mrs.  H.:   "How  long  will  it  take?" 

Clerk :  "Not  over  four  minutes.  By  the  way,  what  else 
have  you  on  your  list  to  buy  to-day  ?" 

Mrs.  H. :  "Oh,  dear !  Lots  of  things,  but  all  I  need  here 
is  this  pair  of  gloves." 

Clerk:  "Perhaps  I  can  help  you.  Aren't  you  going  to 
need  a  cloak  this  fall?" 

Mrs.  H. :  "Yes.  I've  just  got  to  get  one ;  but  I  got  a 
card  from  Brown's  with  some  samples  of  cloth,  and  I 
thought  I'd  go  over  there  and  look  at  'em — they  have  one 
that,  from  the  picture  and  sample,  suits  me." 

Clerk:  "At  what  price?" 

Mrs.  H.:    "$12.50." 

Clerk :  "Well,  while  you  are  here,  look  at  ours  at  $10.50. 
I  think  it  will  suit  you  as  well.  I'll  show  it  to  you  in  a 
minute,  or  ask  Mr.  Jones  to.  You  know  we  want  your 
trade,  and  will  do  as  well  as  anyone,  or  better,"  etc.  (By 
this  time  clerk  is  fitting  the  gloves.) 

In  this  illustration,  the  saleswoman's  beginning  is  splen- 
did. She  knows  the  customer's  name  and  many  other 
things  about  her,  or  she  could  not  be  successful  in  what 


INTEREST,  DESIRE,  AND  DETERMINATION 

follows.  It  will  be  noted  there  is  a  struggle  all  the  way 
through,  due  to  preconceived  notions  held  by  the  customer, 
which,  in  their  turn,  had  been  built  up  by  the  advertising 
of  a  competitor.  Most  salespeople  would  have  been  flus- 
tered at  the  customer's  remark  that  she  was  in  a  hurry  to 
meet  her  husband.  Not  so  with  this  one.  Note  how  tact- 
fully she  gets  the  customer  to  try  on  the  size  that  fits  her 
best.  The  size  she  asked  for  might  have  been  entirely  too 
small.  And  while  the  saleswoman  is  trying  on  the  glove, 
the  opportunity  to  sell  other  goods  is  improved.  Notice 
the  appeal  to  the  instinct  of  saving  or  economy  by  men- 
tioning a  lower  priced  coat  than  the  one  offered  by  the 
competitor.  No  comparisons  are  made  by  the  saleswoman ; 
comparisons  are  made  readily  enough  by  the  customer. 
Another  point  is  illustrated,  and  that  is  the  saleswoman's 
knowledge  not  only  of  her  own  line,  but  also  of  the  stock 
of  the  house — in  this  particular  case,  the  price  of  coats. 
This  is  retail  selling  of  a  high  grade,  and  this  saleswoman 
and  every  other  who  can  do  as  well  deserves  high  position 
and  good  salary.  She  earns  both. 

Impressions. — Observe  the  practice  of  good  salesmen  in 
their  efforts  to  get  customers  interested.  Most  good  sales- 
men get  the  article  into  the  hands  of  the  possible  customer 
as  soon  as  possible,  and  then  make  suggestions  to  induce 
the  customer  to  feel  the  texture,  weight,  or  other  qualities. 
People  differ  in  the  ways  in  which  they  get  their  strongest 
impressions.  Some  are  called  eye-minded,  which  means  that 
they  get  their  clearest  and  best  impressions  through  sight; 
others  are  ear-minded;  and  still  others  get  their  strongest 
impressions  through  touch  or  handling.  All  who  are  not 
defective  get  impressions  through  all  three  ways.  But  if  a 
salesman  sh6uld  encounter  a  customer  whose  best  impres- 
sions came  through  touch,  and  if  he  should  fail  to  have  the 
customer  handle  the  goods,  the  chances  are  that  he  would 
lose  the  sale.  The  mail-order  advertiser  recognizes  this, 

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RETAIL    SELLING    AND    STORE    MANAGEMENT 

and  makes  use  of  the  principle  of  suggestion.  He  describes 
how  the  article  feels  and  how  it  works  so  that  the  customer 
can  clearly  imagine  these  things.  The  lesson  is  obvious, 
and  has  already  been  pointed  out.  Salesmanship  will  take 
no  chances,  but  will  make  its  appeal  through  all  possible 
senses.  Many  a  grocer  could  reap  a  harvest  from  judicious 
sampling  of  ready-to-eat  foods,  teas,  coffees,  condiments, 
etc.  The  principle  is  capable  of  successful  application  in  a 
great  many  more  ways  than  have  yet  been  tried. 

Naming  price. — The  question  of  when  the  price  should 
be  named  is  sometimes  raised.  There  is  much  reason  for 
the  following  common  practice.  Whenever  the  customer 
asks  the  price,  tell  it  at  once,  without  hesitation,  just  as  you 
would  answer  any  of  her  other  questions;  otherwise  men- 
tion the  price  only  after  you  have  described  the  qualities 
of  the  goods  fully. 

There  is  great  danger  in  mentioning  to  the  customer  the 
cost  of  the  goods  to  the  merchant.  Any  hint  in  this  direc- 
tion sets  the  mind  of  the  customer  off  on  a  very  undesirable 
as  well  as  irrelevant  path,  so  far  as  the  store  and  the 
sale  are  concerned.  There  need  be  no  stated  relation  be- 
tween the  cost  of  the  goods  and  the  selling  price.  If 
asked  about  these  matters,  the  salesman  can  always  re- 
spond truly  that  there  is  a  rule  against  speaking  upon  this 
point. 

Patience  with  customers. — A  salesman  should  never  lose 
his  temper.  But  it  sometimes  happens  in  the  case  of  even 
the  best  salesman  that  a  customer  tries  his  patience  almost 
to  the  breaking  point;  or  there  may  be  some  element  in 
the  personality  of  the  customer  which  strongly  antagonizes 
the  salesman.  To  a  good  salesman  this  will  happen  very 
rarely.  It  seems  that  the  best  thing  to  do  under  such  cir- 
cumstances is  to  talk  less  and  to  show  more  goods.  When 
talking,  one's  inner  feelings  are  likely  to  be  made  evident, 
but  by  keeping  quiet  and  exercising  self-control,  antagonism 

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INTEREST,   DESIRE,   AND   DETERMINATION 

may  not  become  evident,  and  the  sale  may  be  carried  out 
successfully. 

Turning  over  the  customer. — In  case  it  seems  for  any 
reason  that  the  salesman  cannot  make  the  sale,  there  should 
be  a  well  understood  arrangement  whereby  the  customer 
may  be  turned  over  to  some  other  salesman.  This  "turning 
over  a  customer"  can  be  made  a  fine  art.  In  shoe  stores, 
the  salesman,  on  failing  to  sell  after  trying  his  best,  intro- 
duces to  the  customer,  by  name,  "the  head  of  the  depart- 
ment," "the  manager,"  "member  of  the  firm,"  or  "the  pro- 
prietor." The  effect  is  usually  good.  The  customer  feels 
complimented  at  the  desire  of  the  store  people  to  serve  her, 
and  the  sale  is  likely  to  be  made  if  the  store  has  suitable 
goods.  The  same  or  similar  plans  can  be  made  effective  in 
all  sorts  of  retail  stores.  Some  such  plans  are  a  part,  or 
should  be,  of  every  store  organization. 

Psychology  of  interest. — When  our  interest  in  a  thing 
becomes  strong,  we  instinctively  want  to  possess  it — to  make 
it  our  own.  This  is  true  for  all  people;  hence  we  have 
here  an  effective  general  principle  growing  out  of  human 
instincts  and  applicable  to  the  business  of  selling.  If,  now, 
we  consider  the  power  of  the  individual's  demand  for  what 
he  feels  necessary  for  his  existence,  his  comfort,  and  his 
happiness,  we  have  the  basic  reason  for  buying.  The  sales- 
man sells  when,  with  his  assistance,  his  goods  have  aroused 
the  feeling  of  interest  in  the  customer  to  such  a  point  as  to 
cause  the  customer  to  decide  to  own  them. 

When  we  analyze  the  matter  carefully,  we  find  that  a 
person  is  hardly  ever  interested  in  anything  that  does  not 
make  an  appeal  to  his  sense  of  self-preservation,  his  per- 
sonal comfort,  his  satisfaction,  or  his  pleasure.  Interest  is 
almost  always  selfish.  This  is  as  it  should  be.  It  is  a  law 
of  nature.  The  interest  one  has  in  other  people  ministers 
to  one's  satisfaction  or  pleasure,  or  it  would  not  exist  at  all. 
A  mother's  instinct  makes  her  interested  in  her  child.  Can 

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RETAIL    SELLING   AND    STORE    MANAGEMENT 

we  think  of  a  mother  not  getting  any  satisfaction  out  of 
this  interest?  This  interest  in  a  normal  mother  is  her 
greatest  satisfaction,  often  the  most  acute  pleasure.  If  she 
loses  satisfaction  and  pleasure  in  the  child,  you  may  be  sure 
that  her  interest  is  also  breaking  down,  as  are,  too,  the 
powerful  instincts  of  motherhood.  The  point  we  are  to 
draw  from  this  is  that,  to  get  persons  interested,  you  must 
give  them  ideas  that  they  will  want  to  make  a  part  of  them- 
selves, that  they  will  want  to  call  their  own.  So  in  selling 
goods,  you  will  get  people  interested  in  goods  when  they 
see  clearly  how  much  they  need  them,  and  how  much  the 
goods  will  contribute  to  their  living,  safety,  comfort,  and 
happiness.  And,  since  human  satisfaction  is  to  a  great 
extent  the  result  of  gratifying  the  blind  cravings  of  the 
instincts,  it  rests  with  the  salesman  to  carry  on  his  sales- 
manship so  as  to  appeal  to  the  prospective  customer  through 
his  instincts,  and  to  offer  the  kinds  of  goods  that  will  satisfy 
those  instincts.  That  appeal  must  be  personal.  The  good 
that  certain  articles  have  brought  to  others  is  absolutely 
nothing  to  me  unless  you  can  show  that  the  same  good  will 
come  to  me.  Your  goods  must  be  such  as  to  satisfy  my 
needs,  and  you,  as  salesman,  must  show  that  they  will. 


CHAPTER   VIII 
CLOSING  THE  SALE 

The  close  of  the  sale  an  act  of  will. — The  favorable  de- 
cision of  the  customer  to  buy  or  to  accept  the  article,  the 
service,  or  the  conditions  offered  by  the  salesman  consti- 
tutes the  close  of  the  sale.  It  is  an  act  of  will  of  the  cus- 
tomer, and  as  such  is  the  logical  ending  of  a  conflict  of 
ideas  in  which  the  ideas  presented  by  the  salesman  win 
over  all  others  that  arise. 

Varying  strength  of  the  will. — It  has  already  been 
pointed  out  that  every  idea  coming  into  the  mind  tends  to 
express  itself  in  some  way.  The  mind  accepts  and  acts 
upon  the  different  ideas  that  enter  it  with  different  degrees 
of  force,  and  the  expression  that  tends  to  follow  seems  to 
be  the  result  of  some  sort  of  overflow  or  explosion  of  the 
mind  upon  the  idea.  In  some  cases  this  is  mild,  and  hard 
to  detect,  but  in  others  it  is  violent  and  obvious. 

The  will,  in  most  cases,  simply  directs  the  flow  of  this 
expression,  chooses  the  method,  or  stops  it  entirely  if  some 
other  idea  of  equal  or  greater  force  enters  the  mind. 

If  there  were  no  obstructions,  every  idea  that  entered 
the  mind  would  cause  a  decision  to  do  something  about  it, 
and  the  expression  would  surely  follow.  A  person  with  a 
mind  working  like  this  would  wave  his  arms,  shout,  move, 
sing,  work,  laugh,  and  cry  in  full  accord  with  every  idea 
entering  his  mind  and  according  to  the  feeling  accompany- 
ing each.  Such  a  person  could  not  hide  his  thoughts.  He 

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RETAIL    SELLING   AND    STORE    MANAGEMENT 

would  have  to  tell  every  idea.  He  could  not  keep  any 
thought  to  himself.  Even  to  think,  "I  will  not  tell  this," 
constitutes  an  obstructive  thought,  a  second  thought  in  the 
mind  at  the  same  time.  The  person  whom  we  have  just 
described  does  not  even  have  this  thought.  The  presence 
of  conflicting  thoughts  stops  the  expression  that  would 
naturally  follow  from  every  idea. 

Some  decision  upon  every  idea. — There  must  be  some 
sort  of  decision  upon  every  idea,  even  though  it  be  only 
the  mere  accepting  or  rejecting  of  it.  We  must  decide  to 
do  something  about  it.  As  a  matter  of  fact,  we  decide  not 
to  express  most  of  the  ideas  that  come  to  us.  And  these 
negative  decisions  are  due  to  the  ideas  or  feelings  that  arise 
and  obstruct  or  call  a  halt  to  the  expression  of  the  idea 
that  is  being  considered.  These  obstructing  ideas  or  feel- 
ings demand  attention  for  themselves  and  inhibit,  as  the 
psychologists  say,  the  force  of  the  first  idea. 

Whatever  the  decision  upon  an  idea  shall  be  depends, 
then,  entirely  upon  the  result  of  the  conflict  between  that 
idea  and  other  obstructing  ideas.  In  salesmanship,  as  well 
as  in  everything  else  where  minds  must  be  influenced,  the 
main  thing  to  be  accomplished  is  to  get  the  necessary  idea 
into  the  mind  of  the  customer  and  then  reinforce  it,  and 
assist  it  to  come  to  favorable  decision  and  expression,  by 
combating  and  displacing  the  obstructing  ideas  if  there  are 
any. 

How  people  decide. — There  is  a  great  deal  of  difference 
among  individuals  in  the  way  this  mental  conflict  takes 
place.  It  may  range  from  almost  nothing  to  a  most  severe 
mental  struggle.  For  convenience  of  study  we  may  think 
of  most  people  as  of  two  types ;  namely,  the  impulsive  and 
the  reasonable.  There  are  no  sharp  lines  between  these 
two  classes.  There  are,  of  course,  the  extremes,  but  most 
people  combine  characteristics  of  both  types,  being  impul- 
sive at  some  times  and  reasonable  at  others.  They  may  be 

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CLOSING   THE   SALE 

impulsive  about  some  things  and  reasonable  about  others. 
Health  and  physical  condition  affect  the  tendency  of  the 
mind.  Experience,  habit,  and  education  make  an  almost 
vital  difference.  It  is  well  known  that  most  untrained, 
uneducated  and  inexperienced  people  are  impulsive  in  their 
decisions,  while  training,  knowledge,  and  experience  make 
for  reasonableness,  especially  in  those  lines  in  which  the 
training,  knowledge,  and  experience  have  been  gained. 

The  impulsive  type. — The  impulsive  type  is  the  kind  in 
which  every  big,  clear-cut  idea  that  enters  the  mind  is 
followed  by  immediate  action.  Among  people  with  this 
type  of  mind  we  find  the  precipitate,  the  quick-tempered, 
the  dare-devil,  the  animated,  and  over-enthusiastic — those 
who  are  extremely  talkative,  those  who  show  their  every 
emotion.  Their  minds  are  occupied  with  but  one  idea  at 
a  time ;  and  because  this  idea  does  not  with  them  naturally 
connect  itself  with  many  others,  their  minds  easily  tire. 
They  are  constantly  seeking  new  subjects  for  thought.  If 
this  characteristic  is  pronounced,  we  call  them  "flighty,"  or 
"feather-brained." 

Sometimes  such  persons  draw  their  ideas  from  within, 
sometimes  from  without.  If  from  within,  we  call  the  per- 
son "set  in  his  way,"  or  "strong-headed,"  especially  if  we 
do  not  see  how  his  motive  arises,  or  if  its  expressions  do 
not  fit  harmoniously  with  what  seems  to  us  usual  and 
best.  If  the  ideas  expressed  come  from  without,  we  say 
that  the  person  is  "easily  led,"  that  he  "floats  with  the 
current,"  that  he  "has  no  mind  of  his  own."  If  this  char- 
acteristic is  strong,  the  person  is  quite  likely  to  be  led  by 
the  suggestion  or  by  the  command  of  others  most  of  the 
time. 

The  reasonable  type. — The  reasonable  type  is  character- 
ized by  a  longer  mental  conflict,  a  calling  up  of  as 
many  ideas  as  possible,  related  to  the  one  demanding  a 
decision,  and  the  weighing  of  the  evidence  on  both 

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RETAIL    SELLING   AND    STORE    MANAGEMENT 

sides.  Whichever  side  seems  to  be  the  stronger  gets  the 
decision. 

There  are  three  ways  in  which  the  mind  may  come  to  a 
reasonable  decision.  First,  the  division  may  be  the  result 
of  a  careful  consideration  of  the  evidence  on  both  sides, 
so  far  as  the  mind  has  this  evidence.  Opposing  ideas  are 
balanced  against  each  other  and  canceled  wherever  possi- 
ble. Finally  either  one  side  or  the  other  has  the  advan- 
tage in  weight  or  importance  of  evidence,  or  perhaps  all 
objections  on  the  other  side  have  been  answered.  Deci- 
sion naturally  follows,  and  takes  the  direction  pointed  out 
by  the  winning  ideas.  This  is  the  highest  type  of  reason- 
ing. 

In  the  second  method  of  coming  to  a  reasonable  decision 
the  mind  also  calls  up  the  ideas  that  it  has  at  command  on 
both  sides,  but  the  decision  is  arrived  at  by  some  one  idea 
springing  into  much  greater  prominence  than  the  rest  and 
crowding  out  all  other  considerations.  The  decision  will 
depend  upon  this  big  idea  and  its  feeling.  In  a  few  cases 
the  conflict  between  the  main  idea  and  the  obstructing  con- 
siderations results  in  a  victory  for  neither  side.  The  per- 
son remains  undecided.  If  the  decision  must  be  made, 
the  choice  usually  comes  by  throwing  the  will  on  one  side 
or  the  other  with  effort  enough  to  overbalance  the  mind 
in  favor  of  that  side.  This  is  the  third  method  of  coming 
to  a  decision. 

In  the  case  of  the  impulsive  type,  action  follows  from 
the  force  of  a  single,  simple  idea ;  whereas,  with  the  reason- 
able type  there  is  the  accumulating  and  sifting  of  evidence, 
and  the  force  of  the  original  idea  is  either  broken  down  or 
increased  by  the  results  of  the  comparison  with  the  ideas 
accumulated. 

"Suggestion"  vs.  "Reason  Why."— The  way  that  a  sales- 
man can  influence  decision  depends  upon  the  type  of  mind 
of  the  customer.  Suggestions  are  the  right  means  of  get- 

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CLOSING   THE    SALE 

ting  decision  from  the  impulsive  type,  and  "reasons  why" 
must  be  given  to  the  reasonable  type  of  mind.  Most  peo- 
ple act  upon  impulse  most  of  the  time,  especially  when 
dealing  with  the  common  things  and  in  common  practice. 
If  one  should  stop  to  deliberate  upon  every  idea  entering 
the  mind  and  calling  for  decision,  he  would  get  nowhere. 
There  are  some  people  who  can  never  make  up  their  minds 
— those  who  must  think  over  every  little  detail.  One  idea 
follows  another  so  closely  as  to  prevent  the  making  of  a 
decision  calling  for  action.  On  the  other  hand,  most  peo- 
ple, even  the  ultra  impulsive,  have  mental  conflicts  of 
considerable  deliberation  as  well  as  duration  at  times.  If 
a  person  were  entirely  devoid  of  this  power  of  deliberation, 
he  might  rush  to  his  destruction  almost  any  day. 

Power  of  suggestion. — Public  speakers,  debaters,  and 
others  who  attempt  to  sway  public  opinion,  always  use  sug- 
gestion as  well  as  argument.  Such  expressions  as  "54-40 
or  fight,"  "On  to  Richmond,"  "The  Union  forever," 
"Down  with  the  tyrant,"  "Long  live  the  king,"  "Hang  the 
traitor,"  and  many  others  have  helped  make  history  be- 
cause of  their  power  of  suggestion. 

Modern  advertisers  are  fully  aware  of  this  characteristic 
method  of  getting  many  persons  to  decide.  In  every  maga- 
zine one  sees  illustrations  filled  with  the  suggestion  of 
"saving  labor,"  "saving  money,"  "giving  satisfaction,"  or 
"furnishing  enjoyment,"  if  you  will  only  buy  the  thing 
advertised.  In  the  advertising  of  a  recent  number  of  a 
business  magazine,  there  occurred  among  others,  the  follow- 
ing expressions: 

The  Prudential  has  the  strength  of  Gibraltar. 

Esterbrook  Steel  Pens.  Easiest  writing — Longest  wear- 
ing. 

An  adding  machine  for  your  personal  use — $10. 

Which?     $6,000  for  your  head  or  $600  for  your  body? 

Be  a  banker. 

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RETAIL    SELLING    AND    STORE    MANAGEMENT 

Stop  forgetting. 

Study  law  at  home. 

A  7%  investment. 

Take  a  trip  to  foreign  America. 

Your  sales  increased. 

In  no  case  were  the  expressions  followed  by  reasons  or 
explanations.  The  aim  of  each  was  merely  to  suggest  cer- 
tain things  to  the  readers'  minds,  which  the  advertiser 
hoped  would  lead  the  readers  to  buy  or  at  least  to  sit  down 
and  answer  the  advertisement. 

Suggestion  depends  for  its  power  upon  the  fact  that  it 
sets  the  mind  going  along  a  certain  line  of  thought  without 
any  opposing  ideas.  Where  reasons  are  given,  a  different 
sort  of  a  condition  is  presumed,  for  reasons  constitute  part 
of  an  argument;  an  argument  is  the  weighing  of  one  side 
against  another,  a  consideration  of  the  points  both  for  and 
against  a  proposition.  There  is  no  such  mental  conflict 
following  a  suggestion.  The  mind  unconsciously  and  sim- 
ply takes  the  direction  that  is  offered  to  it,  and  follows  it 
until  some  break  or  interruption  comes.  The  expression, 
"The  Prudential  has  the  strength  of  Gibraltar,"  is  an  effec- 
tive suggestion  with  many  people.  The  desirable  thing 
about  insurance  is  that  it  shall  be  certain,  and  this  means 
that  the  company  must  be  sound.  "The  Rock  of  Gibraltar" 
is  an  expression  that  suggests  to  all  people  eternal  strength 
and  changelessness.  There  is  a  feeling  of  security  about 
its  lastingness.  This  feeling  is  borrowed  by  the  Pruden- 
tial Company  when  they  suggest  the  association  of  their 
corporation  with  this  ancient  rock. 

There  would  be  no  suggestion  from  this  expression  for 
those  who  know  nothing  about  Gibraltar  or  its  place  in  the 
history  of  the  world.  The  expression  is  usually  accom- 
panied by  a  picture  of  the  rock.  This  helps  to  a  certain 
extent  to  give  the  right  impression  to  those  who  know 
nothing  of  Gibraltar,  but  this  illustration  must  be  doubly 

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CLOSING   THE    SALE 

powerful  with  those  who  know  of  Gibraltar  by  past  read- 
ing or  observation. 

The  same  suggestion  will  not  work  with  all  people.  To 
be  effective,  the  expression  that  contains  the  suggestion 
must  connect  itself  with  some  habitual  line  of  thought  in 
the  mind  of  the  hearer  or  reader,  with  some  common  means 
of  giving  pleasure  or  satisfaction,  with  some  strong  senti- 
ment, some  ambition,  or  some  fear.  Thus  suggestion  is 
most  powerful  when  it  works  on  thoughts  that  are  grounded 
on  instincts.  "Get-rich-quick"  schemes  prosper  because  of 
their  power  of  suggesting  the  thoughts  based  upon  the 
instinct  of  acquisition  or  possession.  If  a  person  would 
stop  to  reason  about  a  "get-rich-quick"  proposition,  he 
would  see  in  most  cases  that  the  rosy  prospects  offered  were 
the  creations  of  his  own  mind.  What  the  mind  of  a  per- 
son would  naturally  or  instinctively  like  can  easily  be 
brought  to  the  attention  by  suggestion.  Patent  medicine 
advertisements  and  quack  doctors  suggest  that  people  are 
ill  and  in  need  of  medicine,  by  giving  long  lists  of  symp- 
toms, some  of  which  any  person  is  likely  to  have  or  to 
imagine  that  he  has.  At  the  suggestion  of  the  advertising 
the  mind  begins  to  discover  symptoms  of  sickness  in  its 
owner's  body,  and  then  plunges  into  a  line  of  thought  that 
pictures  how  dangerously  ill  he  is,  how  necessary  it  is  that 
he  should  do  something  to  cure  the  ailment,  and  how  sensible 
it  would  be  to  take  the  cure  suggested  by  the  quack. 

Suggestion  loses  its  effectiveness  as  soon  as  the  search- 
light of  reason  is  thrown  upon  it.  What  is  suggested  may 
be  either  good  or  bad,  but  when  the  mind  stops  and  thinks 
over  both  sides  of  the  question,  the  power  of  the  idea  sug- 
gested is  partly  destroyed — that  is,  it  is  counterbalanced 
by  other  ideas.  Hence,  the  purpose  in  using  suggestion 
is  to  prevent  the  mind  from  thinking  objections,  and  this 
can  be  accomplished  only  by  direct  appeals  to  strong  habits 
and  dominant  instincts.  Since  these  differ  in  individuals, 


RETAIL    SELLING   AND    STORE    MANAGEMENT 

one  idea  will  not  have  equal  suggestive  value  for  all  people. 

No  one  likes  to  believe  that  he  is  subject  to  suggestion. 
All  would  like  to  be  and  appear  to  be  reasonable.  Hence, 
suggestion  in  the  hands  of  clever  advertisers  and  others 
who  seek  to  influence  the  public  will  frequently  show  the 
outward  form  of  reasoning;  the  suggestion  is  frequently 
clothed  in  pseudo  or  imperfect  logic  to  show  why  the  person 
addressed  should  take  the  course  of  action  suggested.  The 
quoting  of  certain  statistics  without  quoting  equally  reliable 
figures  on  the  other  side  of  an  argument,  the  giving  of 
testimonials  from  people  who  may  themselves  have  acted 
under  suggestion,  the  use  of  such  expressions  as  "This  is 
what  they  are  all  wearing  now,"  and  "Everybody  likes 
Wiggle's  chewing  gum,"  the  proving  of  excellence  by  stat- 
ing that  an  article  is  "Made  in  Germany,"  are  all  illustra- 
tions of  this  sort  of  false  reasoning.  As  a  matter  of  fact 
we  are  all  subject  to  some  suggestions,  and  a  great  many  of 
our  daily  actions  are  responses  to  suggestions  and  not  to 
reasons. 

Suggestion  is  reason  shortened.  Suggestion  is  the  men- 
tal action  and  immediate  decision  following  from  a  single 
idea;  while  reason  brings  in  a  full  comparison  of  all  favor- 
able ideas  with  all  opposing  ideas  before  the  decision  is 
made. 

All  that  is  necessary  to  make  sales  in  some  lines  and  with 
some  people  is  a  suggestion.  All  of  the  steps  of  a  sale  in 
such  a  case  are  compressed  into  one.  Show  an  inveterate 
smoker  his  favorite  cigar,  and  the  suggestion  to  buy  comes 
to  him  at  once,  if  he  is  not  already  supplied.  His  atten- 
tion, interest,  and  desire  simply  focus  into  decision  to  buy. 
The  same  is  true  of  the  newspaper  reader  when  approached 
by  the  newsboy.  The  latter  hardly  ever  uses  argument. 
His  advertising  consists  of  suggestions.  "Morning  paper, 
sir?"  "Herald  or  Sun?"  "All  about  the  wreck/'  "Extra 
Sporting  Editions,"  etc. 

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CLOSING   THE   SALE 

Practical  use  of  suggestion.— Suggestion  may  be  used 
in  a  sales  argument  whenever  the  time  permitted  the  sales- 
man is  short,  or  whenever  the  full  analysis  of  the  article 
would  prove  tiresome  to  the  listener.  The  special  use  of 
suggestion  comes  at  the  close  of  the  demonstration,  when 
the  salesman  feels  reasonably  certain  that  the  customer  is 
favorably  inclined  toward  the  article,  and  needs  only  to 
take  the  deciding  step.  In  advertisements,  one  may  note 
frequently  at  the  close  such  expressions  as  the  following: 

Don't  wait.     Write  now. 

Mail  coupon  to-day. 

Get  this  catalog. 

Ask  your  banker. 

Order  a  sample. 

Send  in  your  order  this  morning. 

The  purpose  of  these  commands  is  to  help  the  reader  to 
make  up  his  mind — to  suggest  so  strongly  the  idea  of  favor- 
able action  that  no  opposing  idea  will  find  a  place  in  the 
reader's  mind. 

The  purpose  of  decision. — The  essential  thing  about  de- 
cision, whether  it  comes  as  the  result  of  a  suggestion  or  of  a 
long  deliberation,  is  that  it  is  an  act  of  the  mind 'seeking 
satisfaction.  Suggestion  is  successful  in  getting  decision  be- 
cause it  calls  up  ideas  that  are  pleasant  and  satisfactory,  or 
the  means  of  getting  pleasure  or  satisfaction. 

Decision  that  comes  after  deliberation  is  the  result  of  the 
mind's  selecting  from  a  variety  of  related  ideas  those  that 
promise  pleasure  or  satisfaction.  The  mind  always  seeks 
to  be  satisfied.  Only  that  which  satisfies  or  promises  satis- 
faction interests  us. 

Ideas  appealing  to  instincts  are  strongest. — What  sort 
of  ideas  will  satisfy  and  interest  the  mind?  None  are  so 
certain  with  most  people  as  those  that  are  based  directly 
upon,  or  derived  from,  the  instincts.  Show  by  a  sugges- 

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RETAIL    SELLING   AND    STORE    MANAGEMENT 

tion  that  an  instinctive  craving  will  be  satisfied,  and  you 
will  get  interest.  Or,  if  the  suggestion  does  not  call  up 
sufficient  force  in  the  customer's  mind,  add  description  and 
argument  and  further  suggestion.  If  the  chord  of  deep  in- 
terest is  struck,  decision  in  favor  of  the  goods  is  close  at 
hand. 

After  the  demonstration. — When  a  salesman  has  de- 
scribed his  goods  to  the  customer,  suggested  their  uses,  and 
made  his  proposal  clear,  the  customer  will  be  in  one  of  three 
states  of  mind.  He  may  not  be  interested  at  all.  This 
state  of  affairs  will  arise  frequently  in  most  salesmen's 
experiences.  The  goods  may  not  be  suitable  for  the  cus- 
tomer's use;  he  may  not  be  in  a  position  to  use  them  at 
all;  he  may  have  something  better  for  his  use;  or  there 
may  be  other  good  reasons  for  lack  of  interest.  A  sales- 
man should  expect  to  sell  only  to  those  who  can  be  shown 
that  to  purchase  will  be  an  advantage. 

Treatment  of  indecision. — The  usual  mental  state  of  the 
buyer,  after  the  demonstration,  is  quite  frequently  that 
of  indecision — of  deliberation.  This  condition  calls  for 
the  statement  of  more  new  facts.  The  salesman  needs, 
perhaps,  to  restate  some  of  the  facts  already  given,  in  a 
slightly  different  way  so  as  to  make  sure  that  they  are 
properly  understood.  He  may  relate  what  success  other 
buyers  are  having  with  the  same  thing,  or  he  may  bring 
in  testimonials.  If  the  customer's  indecision  proves  hard 
to  break  down,  the  salesman  may  introduce  special  argu- 
ments usually  reserved  for  such  occasions,  as  for  example, 
special  prices,  favorable  terms,  special  service,  premiums, 
and  so  on.  He  may  force  a  decision  by  turning  away  and 
by  getting  ready  to  leave  or  by  some  other  definite  action 
calculated  to  cut  off  all  further  deliberation. 

Meeting  objections. — It  is  at  this  stage  of  the  sale  that 
the  customer's  objections  are  most  likely  to  arise,  and  for 
these  the  salesman  must  be  ready  with  full  and  correct 

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CLOSING   THE    SALE 

answers  that  will  completely  displace  the  negative  power 
of  the  objections  in  the  customer's  mind.  Some  of  the 
most  common  objections  met  in  ordinary  business  are  given 
here  merely  as  a  suggestion  of  the  lines  along  which  the 
salesman  must  study. 

1.  "I  don't  want  it."     A  customer  does  not  want  a  thing 
when  he  feels  no  need  for  it.     The  answer  to  the  objec- 
tion is  to  point  out  how  he  needs  it. 

2.  "I  don't  need  it."     The  demonstration   and  descrip- 
tion of  the  goods  should  aim  definitely  and  clearly  at  show- 
ing the  customer  his  need  for  the  article.    If  that  need  can- 
not be  shown,  the  sale  deserves  to  be  lost.     If  a  man  feels 
no  need  for  an  article,  it  can  have  no  value  for  him. 

3.  "Price  too  high."     In   answer  to  this   objection   the 
salesman    may    make    comparisons    with    other    goods,   or 
he  may  point  out  what  the  returns  will  be  from  the  invest- 
ment.    It  is  not  what  one  pays,  but  what  one  gets  for 
what  he  pays,  that  counts. 

4.  "Can't  afford  it."     The  salesman  must  prove  definitely 
that  the  customer  can  afford  it.     He  may  show  that  the 
customer  cannot  afford  to  get  along  without  it. 

5.  "I  will  wait  a  while."     The  salesman  must  show  that 
the  delay  will  mean  a  loss,  that  to  put  off  buying  can  bring 
no  good.     If  the  article  is  worth  having  later,  it  is  worth 
having  now. 

6.  "I  am  satisfied  with  what  I  have  now."     The  sales- 
man may  raise  the  question  if  the  customer  would  still  be 
satisfied  with  the  older  article  if  he  owned  a  new  one  that 
would  serve  him  much  better.     He  might  suggest  the  favor- 
able effect  of  the  new  article  upon  other  people  who  will 
see  the  change.     One  is  satisfied  with  a  thing  only  when 
he  does  not  have  something  better  to  take  its  place.     Con- 
sider how  successful  men  have  kept  their  minds  open  to 
new  ideas   and  improvements.     Progress  is  the  result  of 
this  open-mindedness. 

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RETAIL    SELLING   AND    STORE    MANAGEMENT 

There  is  only  one  logical  way  to  meet  a  customer's  ob- 
jection, and  that  is  to  analyze  it  fully — by  anticipating  it, 
if  possible — and  then  to  meet  it  fairly  and  squarely  with 
facts.  But  most  salesmen  fail  to  meet  objections  in  such 
a  manner  because  they  have  not  the  facts ;  they  do  not 
know  fully  what  the  facts  are,  or  they  do  not  know  how 
to  state  them. 

The  psychological  moment  for  the  close. — When  a 
customer's  mind  has  fully  grasped  the  salesman's  offer, 
when  the  negative  ideas,  the  obstructing  objections,  have 
all  been  dispelled,  and  when  his  mind  is  occupied  with 
the  good  points  of  the  article,  then  is  the  time  to  think  of 
effecting  the  close.  That  is  the  psychological  moment  of 
the  sale.  There  is  no  place  for  hesitation  on  the  part  of 
the  salesman  at  this  point.  He  must  proceed  boldly.  Nor 
is  there  any  reason  for  hesitation.  It  may  be  safely  as- 
sumed that,  if  the  customer  fully  understands  the  goods 
and  has  no  unanswerable  objections  to  them,  he  will  buy  if 
asked  to  do  so.  When  this  time  has  been  reached,  the 
customer's  mind  is  ready  for  action.  To  talk  more,  or  to 
add  further  arguments  would  be  both  useless  and  danger- 
ous, for,  if  the  mind  does  not  get  a  chance  to  act  when 
ready  to  do  so,  it  grows  tired  of  the  subject  at  once  and 
feels  a  disgust  for  it.  Many  a  sale  has  been  lost  because 
the  salesman  kept  on  talking  after  the  customer  had  made 
up  his  mind. 

Managing  the  close  of  the  sale. — With  some  persons  it 
may  be  very  difficult  to  determine  just  when  this  psycholog- 
ical moment  has  been  reached.  The  salesman  wants  to 
avoid  the  appearance  of  pressing  the  sale,  but  he  needs  also 
to  be  ready  to  grasp  the  opportunity  to  sell  as  soon  as  it 
comes.  Therefore,  tactful  questions  aimed  at  testing  the 
feeling  of  the  customer  and  avoiding  any  open  break  or 
objection  should  be  raised  from  time  to  time  to  see  which 
way  the  customer  inclines.  The  final  appeal  is  nearly  al- 

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CLOSING    THE    SALE 

ways  in  the  form  of  a  suggestion,  and  it  is  best  when  it 
can  not  be  misinterpreted,  or  when  it  can  start  the  mind 
only  along  the  positive  direction  that  leads  to  the  purchase. 
Note  the  difference  in  the  following  suggestions: 

"You  don't  want  to  buy  a  new  coat,  do  you?"  (Neg- 
ative.) 

"A  new  coat  for  you  in  time  for  Easter."  (Posi- 
tive.) 

The  first  suggests  the  immediate  answer,  "No,  I  don't/' 
The  second  causes  one  to  pause,  and  think  "A  new  coat  for 
Easter  would  be  a  fine  thing." 

A  good  drygoods  salesman  does  not  say,  "Do  you  want 
to  buy  some  of  this  cloth?"  That  might  suggest,  "No,"  to 
the  customer.  The  salesman  says,  "How  many  yards  will 
you  need?"  The  salesman  will  not  say,  "Do  you  want 
this  ?"  or  "You  had  better  take  this" ;  he  will  assume  that 
the  customer  wants  it,  and  he  will  say,  "Do  you  wish  to 
take  this  with  you?"  "What  is  your  address,  please?" 
"When  would  you  want  this?"  "Would  you  like  this 
shipped  by  freight  or  by  express?"  "There  are  three 
styles;  which  do  you  prefer?" 

After  the  customer  has  given  his  consent  to  the  purchase, 
the  salesman  should  seek  to  make  the  necessary  closing 
arrangements,  such  as  filling  the  order,  making  out  the 
sales  slip,  or  whatever  else  may  be  required,  as  soon  as 
possible.  No  good  ever  comes  from  adding  more  selling 
talk  when  a  sale  is  made.  In  fact,  many  sales  have  been 
lost  because  the  salesman  did  not  know  when  to  stop  talk- 
ing. If  the  demonstration  of  the  goods  has  been  complete, 
no  further  explanation  is  needed.  When  the  customer 
buys,  it  is  safe  to  assume  that  he  is  satisfied.  Any  further 
talk  by  the  salesman  should  be  in  the  nature  of  instruction 
on  how  to  use  the  goods.  When  the  customer  takes  the 

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RETAIL    SELLING   AND    STORE    MANAGEMENT 

goods,  she  does  so  because  she  believes  that  they  will  suit 
her.  The  goods  and  the  salesman  must  from  henceforth 
"make  good"  by  act  instead  of  by  words. 

Every  customer  should  be  thanked  for  her  purchase. 
"Thank  you,  sir,"  or  "Thank  you,  madam,"  should  be  said 
clearly  and  distinctly  and  in  tones  that  will  show  that  the 
salesman  means  it.  If  the  salesman  cannot  make  the  sale, 
he  should  thank  the  customer  for  her  time,  and  express 
regret  that  he  cannot  be  of  service  to  her.  The  spirit  of 
the  close,  whether  a  sale  is  made  or  not,  should  be  such 
that  the  customer  will  want  to  come  again.  Make  her  glad 
that  she  came. 


CHAPTER   IX 
SPECIAL  PROBLEMS  IN  RETAIL  SALESMANSHIP 

Differences  in  selling  ability.— One  of  the  noteworthy 
things  about  actual  salesmanship  is  the  difficulty  of  analyz- 
ing and  pointing  out  the  exact  causes  of  success  or  failure 
in  many  attempted  sales.  Sometimes  an  individual  may 
give  ever  so  good  a  demonstration,  make  the  uses  of  his 
article  ever  so  clear,  and  the  means  of  obtaining  it  sur- 
prisingly easy ;  the  prospective  customer  may  be  one  who 
might  be  greatly  helped  by  owning  the  article;  but  still  the 
sale  fails.  Another  salesman  may  happen  along  and  give 
a  less  logical  demonstration ;  he  may  have  a  poorer  article ; 
and  yet  make  the  sale.  Why  this  difference  in  results? 

Personality  of  the  salesman. — There  are  many  possible 
reasons  for  such  occurrences.  Perhaps  the  most  important 
factor  in  bringing  such  things  about,  however,  is  the  per- 
sonality of  the  salesman.  People  are  not  cold-blooded,  logi- 
cal machines.  Facts  and  reasons  are  not  everything  with 
anybody.  The  subtle  influence  of  the  man  behind  the  goods 
helps  make  or  spoil  many  a  sale. 

What  is  personality. — It  is  hard  to  define  personality. 
It  is  hard  to  tell  what  its  causes  are.  There  seem  to  be 
some  qualities  in  every  person  that  attract  and  others  that 
repel,  entirely  aside  from  any  ideas  that  may  be  expressed 
by  him.  These  positive  and  negative  forces  in  a  person 
assist  or  detract  from  his  power  to  influence  his  fellows. 
There  are  some  who  are  declared  to  be  natural  born  lead- 

95 


RETAIL    SELLING    AND    STORE    MANAGEMENT 

ers.  People  seem  to  expect  to  follow  them,  and  to  do  as 
they  direct.  We  say  they  have  strong  personalities.  Many 
of  their  qualities  are  such  that  they  can  be  analyzed  and 
pointed  out ;  among  the  most  common  of  these  are  honesty, 
loyalty,  self-confidence,  persistence,  initiative,  and  resource- 
fulness. A  person  of  vigorous  health — who  is  full  of  en- 
ergy, and  who  looks  it — always  commands  more  attention, 
other  things  being  equal,  than  the  weak,  sick,  or  lazy  type. 
A  person  who  knows  his  business  and  has  a  reputation  for 
knowing  it  has  at  least  one  of  the  elements  in  a  strong 
personality. 

Personality  in  selling. — After  physical  health,  appear- 
ance, courtesy,  and  knowledge  of  goods,  strong  personality 
in  selling  is  more  than  anything  else  a  combination  of  two 
things — tact  and  enthusiasm. 

Tact. — Tact  is  the  ability  to  get  along  with  people,  to  lead 
them,  to  influence  them,  to  tell  them  the  truth  without  giv- 
ing offence.  Tact  is  the  result  of  a  keen  sense  of  other 
peoples'  feelings  and  a  knowledge  of  what  they  like  and 
dislike — of  what  pleases  them  and  what  hurts  them.  A 
tactful  person  is  one  who  can  see  clearly  the  other  fellow's 
point  of  view.  Those  who  are  tactless  are  usually  self- 
centered,  with  their  thoughts  solely  upon  themselves. 
Knowledge  of  the  problems  of  other  people,  together  with 
a  sufficient  experience  in  these  problems  to  know  how  other 
people  feel  is  the  surest  way  of  acquiring  tact.  The  tact- 
less person  explains  how  he  hurt  someone's  feelings,  by 
saying:  "I  didn't  think."  That  is  just  it.  He  did  not 
think  of  the  effect  of  what  he  said  or  did  before  the  act. 
A  little  more  attention  to  the  points  of  view  of  others 
would  lessen  the  number  of  such  mistakes. 

Enthusiasm. — Enthusiasm  is  the  keynote  of  success  in 
salesmanship.  As  a  great  salesman  has  said,  "Enthusiasm 
is  the  white  heat  that  fuses  all  other  good  qualities  into 
one  effective  mass.  A  little  illustration:  take  a  piece  of 

96 


PROBLEMS  IN  RETAIL  SALESMANSHIP 

blue  glass  and  a  sapphire.  You  can  polish  that  glass  until 
it  has  a  surface  as  smooth  and  hard  as  the  sapphire's.  But 
when  you  look  down  into  them  you  see  thousands  of  little 
lights  shining  up  at  you  out  of  the  sapphire  that  you  can- 
not see  in  the  blue  glass — and  you  never  can  get  out  of  the 
blue  glass  those  little  tongues  of  flame  which  just  seem  to 
leap  out  as  you  look  at  the  sapphire.  What  these  little 
lights  are  in  a  sapphire,  enthusiasm  is  in  the  man.  Some 
men  are  almost  irresistible;  it  is  because  enthusiasm  radiates 
from  their  features,  beams  from  their  eyes,  and  is  present 
in  their  actions.  A  man  lacking  enthusiasm  is  only  a 
statue." 

Sane  enthusiasm. — If  a  man  is  enthusiastic,  that  fact 
proves  his  interest  in  his  goods ;  and  his  interest  will  attract 
others'  interest.  Enthusiasm  in  selling  is  expressed  by 
the  bright  eye,  the  clear-cut,  straight-forward,  sympathetic 
expression,  dignity  without  frigidity,  optimism  without 
bragging  or  bravado,  naturalness  and  not  affectation  in 
manner,  and  readiness  to  do  the  next  thing,  whatever  it 
may  be.  The  salesman's  language  should  consist  of  direct, 
concise  ideas  and  not  of  hollow  words  and  phrases.  All 
of  these  things,  and  more,  too,  have  a  part  in  creating  the 
desirable  impression  of  enthusiasm. 

Faith. — Personality  is  improved  by  one's  attitude  toward 
the  goods  he  has  to  sell.  One  cannot  hope  to  exert  posi- 
tive influences  unless  he  has  the  utmost  faith  in  his  goods,  in 
his  house,  and  in  its  way  of  doing  business.  The  "knocker" 
may  have  reason  for  his  fault  finding,  but  his  selling  ability 
is  lowered  by  his  mental  attitude. 

Bluffing. — The  "bluffer"  is  weak  in  personality.  He  may 
succeed  in  "putting  up  a  front"  a  few  times,  but  it  is  con- 
trary to  nature  for  him  to  succeed  always.  He  does  not 
know  what  he  is  talking  about,  and  he  knows  that  he  does 
not  know.  This  fact  will  be  sufficient  to  undo  him.  Some- 
one will  soon  see  through  him. 

97 


RETAIL    SELLING   AND    STORE    MANAGEMENT 

Manner  of  speaking. — Manner  of  speaking  is  important 
as  a  part  of  the  personality.  What  a  salesman  says  should 
be  clear — so  simple  that  there  can  be  no  misunderstanding. 
He  should  never  seem  to  be  at  a  loss  for  something  to 
say,  and  yet  what  he  says  should  express  definite  ideas. 
Repeating  from  memory  always  gives  a  bad  impression, 
as  does  a  cut-and-dried  style  of  description.  The  sales- 
man needs  to  cultivate  new  ways  of  expressing  his  ideas, 
suited  to  the  changing  needs  of  his  customers. 

Know  customers'  names. — Know  people  by  name.  It  is 
surprising  how  pleasing  it  is  to  most  people  to  have  others 
know  them  and  call  them  by  name.  The  speaking  of  the 
name  secures  an  extra  hold  on  the  attention  of  the  cus- 
tomer. As  a  matter  of  habit  we  all  give  our  full  attention 
to  the  man  who  calls  us  by  name.  The  salesman  places 
himself  in  a  position  of  power  right  at  the  outset  by  this 
means.  The  customer  likes  it,  and  naturally  returns  again 
to  the  one  who  knows  him  personally.  It  will  pay  any 
salesman  in  any  city,  large  or  small,  to  learn  the  names  of 
as  many  customers  as  possible.  Many  successful  business 
men  made  it  a  part  of  their  early  training  to  speak  to  all 
of  their  customers  and  to  call  them  all  by  name.  This 
is  a  detail  that  is  worth  cultivating. 

Sell  the  most  profitable  goods. — Where  no  particular 
choice  among  several  articles  is  manifested  by  the  cus- 
tomer, and  where  there  is  a  difference  in  the  amount  of 
profit  to  be  yielded  to  the  store  by  the  articles  under  con- 
sideration, a  salesman  can  and  should  add  to  the  resources 
of  his  institution  by  selling  to  the  customer  that  which  yields 
the  store  the  largest  profit.  This  is  entirely  legitimate 
when  the  customer  will  be  equally  well  served  and  as  well 
satisfied  by  the  article  selected  by  the  salesman  as  he  would 
be  if  it  were  selected  solely  by  himself.  Every  store  and 
its  salesmen  must  push  and  suggest  its  most  profitable 
lines. 

98 


PROBLEMS  IN  RETAIL  SALESMANSHIP 

Do  not  show  what  will  not  fit. — When  a  salesman  is  sell- 
ing a  line  in  which  there  are  sizes  and  in  which  he  cannot 
supply  any  size  in  all  patterns,  colors,  or  designs  on  hand, 
he  will  do  well  to  avoid  showing  any  pattern,  color,  or  design 
in  which  he  does  not  have  the  size  that  will  fit  the  cus- 
tomer. To  show  a  color  that  may  prove  attractive  to  a 
customer  and  then  have  to  tell  her  that  the  store  cannot 
supply  the  right  size  will  likely  cause  the  customer  to  go 
elsewhere  in  search  of  the  same  color.  The  salesman  should 
know  his  stock  so  well  that  such  mistakes  could  not  occur. 

Handle  goods  appreciatively. — The  salesman  should 
handle  his  goods  as  if  he  valued  them  highly.  To  throw 
things  about  roughly,  to  handle  them  in  a  rough  manner  or 
with  soiled  hands,  gives  a  bad  impression  to  many  people. 
The  best  salespeople  in  the  world  are  those  who  handle 
their  goods  as  if  they  loved  them,  with  caresses  and  great 
care,  as  if  the  goods  were  alive  and  had  feeling.  This  is  a 
principle  of  wide  application;  many  otherwise  good  sales- 
men would  do  well  to  study  it  and  apply  it. 

Customers  first. — The  prospective  customer  should  have 
the  first  consideration  in  a  store.  Everything  else  should 
come  second.  If  the  salesman  is  talking  to  some  one  who  is 
not  a  customer  when  a  customer  enters  the  store,  let  him 
stop  his  sentence  in  the  middle  and  go  to  the  customer — 
let  the  subject  rest  until  the  customer's  wants  have  been 
attended  to  fully. 

Meet  the  customer  promptly. — The  salesman  should  not 
wait  for  the  customer  to  come  to  him;  he  should  go  to 
meet  the  customer  promptly  and  respectfully.  This  helps 
to  get  favorable  attention  from  most  customers;  it  makes 
a  good  impression,  and  therefore  pays. 

No  favoritism. — There  should  be  no  favoritism  towards 
customers.  Each  should  be  waited  upon  in  his  turn  unless 
full  permission  has  been  granted  by  those  preceding  for 
the  salesman  to  give  his  attention  to  the  later  comer.  Fair 

99 


RETAIL    SELLING    AND    STORE    MANAGEMENT 

play  appeals  to  all,  even  those  who  are  anxious  to  be  waited 
upon  before  their  neighbors  who  arrived  sooner.  The 
salesman  should  nod  recognition  in  a  kindly  way,  or  explain 
pleasantly  that  he  will  be  glad  to  serve  the  latest  comer 
as  soon  as  the  others  are  waited  on.  This  is  necessary,  for 
it  helps  to  hold  the  probable  customer  until  there  is  time 
to  attend  to  her  wants.  Otherwise  she  might  resent  the 
lack  of  attention  and  turn  around  and  go  out.  Another 
plan  is  to  try  to  get  the  customer  busy  at  something  or 
other.  If  it  is  a  warm  day,  ask  her  to  be  seated  and  hand 
her  a  fan;  this  will  result  in  good  will  and  patience  in 
many  cases.  If  the  goods  in  which  she  shows  interest  are 
displayed  on  the  counters,  she  might  be  encouraged  to  look 
them  over  herself.  A  number  of  other  ways  will  suggest 
themselves  to  wide-awake  salesmen  to  hold  customers  in 
a  rush.  The  important  point  is  to  hold  as  many  as  possible, 
and  still  give  to  everyone  a  "square  deal"  in  the  way  of 
personal  service  and  attention. 

Answer  questions  frankly. — All  questions  asked  of  sales- 
men should  be  answered  frankly  and  promptly,  if  they  are 
at  all  proper.  When  a  customer  asks  a  question  about  the 
goods,  a  frank,  truthful  answer  should  be  given,  and  it 
should  be  given  at  once.  Hesitation  is  often  a  sign  either 
of  ignorance  or  of  the  taking  of  time  to  think  up  some 
deception.  Good  salesmen  cannot  afford  to  put  such  im- 
pressions into  any  customer's  mind.  The  truth  must  be 
told ;  but  there  are  some  ways  of  telling  the  truth  that  are 
more  tactful  than  others,  as  has  already  been  pointed  out. 
Tact  must  be  used  in  phrasing  the  truth.  There  is  a  story 
about  a  shoe  salesman  who  was  asked  by  a  lady  whom  he 
was  fitting  if  one  of  her  feet  were  not  larger  than  the  other. 
He  replied  quickly,  "One  foot  is  a  little  smaller  than  the 
other."  The  ability  to  combine  truth  and  tact  in  this  way 
is  the  kind  of  ability  that  brings  success  in  selling. 

Contrary  customers. — There  are  some  customers  who  are 

100 


PROBLEMS    IN    RETAIL    SALESMANSHIP 

hard  to  lead  in  the  matter  of  selection.  They  resent  any 
direction,  other  than  through  suggestion,  unless  the  help 
of  the  salesman  is  definitely  asked.  In  fact,  to  make  a 
sale  to  some  people,  it  is  necessary  to  do  as  the  Irishman 
did  who  drove  his  pig  to  Dublin  by  making  the  pig  think 
that  he  wanted  it  to  go  the  other  way. 

Be  obliging. — Salespeople  should  answer  questions  will- 
ingly, if  they  can  answer  them  at  all.  People  often  drop 
into  stores  to  inquire  directions.  Some  salesmen  look  upon 
such  inquirers  as  intruders.  This  is  wrong.  The  salesman 
can  well  afford  to  give  directions  or  answers  with  courtesy. 
In  some  cities,  people  frequently  drop  into  a  store  to  have 
a  bill  changed  or  to  ask  some  similar  favor.  Salesmen 
and  storekeepers  should  willingly  and  gladly  grant  these 
favors  if  they  know  that  there  is  no  dishonesty  intended 
by  the  visitors.  A  man  once  moved  from  one  town  to 
another,  and  on  the  day  that  he  arrived  in  his  new  home, 
he  had  occasion  to  get  change  for  a  ten  dollar  bill.  He 
walked  into  a  grocery  store,  presented  the  bill,  and  the 
change  was  refused  without  any  explanation.  He  then  of- 
fered to  buy  a  five  cent  article  that  lay  in  front  of  him, 
but  the  storekeeper  refused  to  sell,  saying,  "You  just  want 
to  buy  that  so  you  can  get  the  change  from  me."  Do  you 
think  this  man  opened  an  account  at  this  store  when  he 
began  buying  the  next  day  ?  He  did  not.  He  never  traded 
at  that  store.  A  few  years  ago  the  store  was  closed,  and 
there  were  no  friends  to  mourn  the  fact.  A  short-sighted 
service  policy  never  brings  success. 

Attend  closely  to  customer. — When  waiting  on  the  cus- 
tomer the  salesman  should  give  the  customer  his  entire 
attention.  Salesmen  should  not  speak  to  one  another  in 
the  presence  of  customers  except  in  the  necessary  service 
of  a  customer.  The  salesman  should  be  an  interested  lis- 
tener to  what  the  customer  has  to  say,  and  her  point  of 
view  should  be  thoroughly  respected.  The  store  is  for  the 

101 


SELLING   AND    STORE    MANAGEMENT 


customer,  and  not  the  customer  for  the  store.  If  there  were 
no  customers,  there  could  be  no  stores,  but  there  could  be 
people  without  stores  —  especially  could  they  get  along  with- 
out the  stores  that  do  not  adequately  serve  them. 

Customers'  complaints.  —  Listen  to  the  customers'  com- 
plaints. Find  out  what  they  are  in  a  respectful  way.  Do 
not  get  angry  or  feel  insulted.  Find  out  what  the  reasons 
for  the  complaints  are  and  profit  by  them.  The  successful 
salesman  is  the  one  who  can  suit  all  kinds  of  people.  There 
are  some  good-natured  people  that  anybody  can  sell  to  and 
satisfy.  A  noted  advertising  man  for  a  large  department 
store  kept  in  his  office  above  his  desk  a  picture  of  a  cross, 
tired-looking  woman  —  the  kind  that  is  hardest  to  suit. 
When  asked  why  that  picture  was  there,  he  replied,  "I 
write  all  my  advertising  with  that  woman  in  mind.  If  I  can 
suit  her,  there  will  be  no  question  about  suiting  the  rest 
of  the  people." 

Profit  by  complaints.  —  Oftentimes  there  is  reason  for 
the  complaints  that  are  made.  A  store  should  be  glad  to 
have  them  come.  The  dangerous  kind  of  complaints  are 
those  which  do  not  come  in  until  they  have  traveled  from 
person  to  person  for  weeks.  No  store  is  perfect.  No 
salesman  is  perfect.  Open-mindedness  is  shown  by  the  de- 
sire to  learn  weak  points  and  to  have  them  corrected.  Our 
critics  are  unwittingly  our  best  friends,  for  they  make  us 
improve. 

Should  a  retail  clerk  try  to  sell  anything?  —  Should  a 
retail  salesman  attempt  to  sell  things,  other  than  those  which 
the  customer  comes  in  to  buy?  Recently  a  young  sales- 
man said,  "Why,  I  wouldn't  do  that.  The  customer  knows 
what  she  wants.  To  try  to  force  anything  else,  or  more 
than  she  wants,  on  her  would  be  a  kind  of  hold-up."  This 
salesman  thought  his  entire  duty  had  been  performed  when 
he  had  given  courteous  attention  to  the  customer's  demands. 
But  he  was  not  a  salesman.  He  was  merely  an  order-taker, 

102 


PROBLEMS  IN  RETAIL  SALESMANSHIP 

though  in  this  case  a  fairly  good  one,  because  he  was  good 
mannered  and  active. 

Service  to  customers. — After  what  has  already  been  said, 
it  is  hardly  necessary  to  show  in  detail  why  a  salesman 
should  attempt  to  sell  more  goods  than  those  the  customer 
comes  in  to  order.  There  are  two  reasons  why  the  sales- 
man should  do  more  than  merely  wait  on  his  customers. 
The  first  is  that  this  service  is  due  to  the  customer.  To 
sell  a  customer  what  she  does  not  want  is  absolutely  wrong, 
and  the  business  that  attempts  to  do  this  cannot  stay  long 
in  existence,  and  does  not  deserve  to  do  so.  But  to  tell  a 
customer  of  new  things,  new  uses,  and  new  qualities,  to 
advertise  the  fact  that  you  have  the  goods  that  she  may 
think  can  only  be  obtained  elsewhere,  is  a  matter  of  educa- 
tion for  the  customer,  for  which  most  people  are  really 
thankful  if  the  service  has  been  rendered  in  a  tactful  way. 

Progress  in  standard  of  living  due  to  salesmen. — The 
material  comforts  of  our  life — the  apparatus,  furnishings, 
and  articles  of  home  use — have  increased  greatly  within  the 
past  few  years.  The  modern  home  compared  with  the 
home  of  a  hundred  years  ago  is  a  marvel.  But  practically 
everything  that  has  been  added  to  make  the  home  what  it 
is  has  been  introduced  to  the  home-makers  by  salesmen 
or  by  salesmanship  in  print  in  the  form  of  advertising.  In 
the  progress  of  increasing  comfort  in  living  that  nearly 
all  people  are  sharing  in  these  days,  the  greatest  credit  be- 
longs to  retail  salesmen — those  who  are  really  salesmen,  that 
is,  educators  of  the  public. 

A  community  stands  still  that  is  served  by  order-takers. 
The  backwardness  of  many  small  communities  is  due  solely 
to  the  fact  that  they  have  not  live,  progressive,  aggressive 
dealers  who  seek  to  educate  their  customers. 

Service  to  employer. — The  second  reason  why  retail 
salesmen  should  try  to  sell  other  goods  besides  those  the 
customer  comes  in  to  buy  is  that  it  takes  sales  to  make 

103 


RETAIL    SELLING    AND    STORE    MANAGEMENT 

profits,  and  it  takes  profits  to  continue  the  growth  of  a  busi- 
ness. No  sales  mean  no  profit.  One  article  sold  means  one 
profit ;  two  articles  sold  mean  more  profit.  A  good  sales- 
man not  only  serves  his  customers  by  satisfying  them,  but 
he  also  serves  his  employer.  It  is  his  business  to  make  sales. 

So  the  retail  salesman  should  go  after  business,  but  of 
course  he  should  use  tact  and  knowledge  of  his  business  in 
making  his  attempts  to  sell.  The  greatest  danger,  however, 
is  not  that  mistakes  will  be  made  in  pushing  the  business, 
but  rather  that  the  business  will  not  be  pushed  enough. 
Better  err  on  the  side  of  being  a  hustler  than  on  the  side  of 
being  over-cautious.  Work  along  all  legitimate  lines  in  in- 
creasing the  prestige  of  your  business.  A  successful  busi- 
ness reflects  full  credit  on  the  successful  salesman  in  that 
business. 

Find  out  cause  of  failures. — If,  as  often  happens,  the 
sale  cannot  be  closed  favorably  the  salesman  should  attempt 
to  learn  why  he  failed.  Let  him  analyze  his  goods  and 
see  why  the  customer  did  not  buy  them,  and  let  him  frankly 
analyze  himself  and  face  the  reasons  why  he  could  not 
make  the  sale.  The  salesman  should  never  lose  his  temper. 
Even  when  treated  shabbily,  he  should  remember  that  he 
is  a  gentleman  and  that  he  represents  a  respectable  house 
that  wants  him  to  be  a  gentleman.  Let  the  customer  see 
that  the  salesman  cannot  be  aggravated  or  irritated,  and  in 
most  cases  his  appreciation  of  the  salesman  will  rise. 

Leave  customers  with  friendly  feeling. — When  leaving 
a  customer,  whether  she  has  purchased  or  not,  make  sure 
that  the  spirit  of  the  occasion  is  not  such  that  she  will  not 
want  to  see  you  again.  Business  is  impersonal,  but  busi- 
ness relations  are  extremely  personal.  The  most  successful 
salesmen  are  those  who  draw  the  good  will  not  only  of  their 
customers,  but  also  of  those  who  do  not  buy.  Sometime  or 
other  the  latter  may  buy. 

The  store  is  not  a  loitering  place. — The  store  is  not  a 

104 


PROBLEMS   IN    RETAIL    SALESMANSHIP 

loitering  place  for  people  who  have  nothing  to  do.  The 
trade  of  many  stores  is  ruined  because  these  places  be- 
come loafing  places  for  idlers  whose  greatest  delight  is  to 
chew  or  smoke  tobacco,  tell  stories,  and  spread  gossip. 
Ladies  do  not  like  to  go  to  such  places,  nor  do  self- 
respecting  men.  This  is  so  well  recognized  that  even  some 
cigar  stores,  where  one  would  suppose  that  the  proprietor 
would  be  glad  to  have  men  come  in  to  sit  down  and  smoke, 
do  not  have  a.  single  chair  in  the  place,  and  no  room  for 
loungers.  The  store  is  a  business  place,  and  it  does  best 
when  it  lives  up  to  this  ideal.  Rest  rooms  are  provided  in 
some  large  stores  for  customers,  and  this  is  good  policy, 
but  these  rooms  are  separated  definitely  from  the  rest  of  the 
establishment.  One  does  not  have  to  go  to  the  rest  room 
unless  he  wants  to. 

All  loitering  and  pure  visiting  in  the  ordinary  retail  store 
should  be  discouraged.  Retail  salesmen  should  explain  this 
to  their  friends  so  that  it  may  be  definitely  known  that  the 
store  is  the  place  where  the  customer  comes  first  always. 

Visiting  among  salespeople  is  also  bad  if  there  are  cus- 
tomers in  the  store.  It  may  seem  unnecessarily  hard  that 
two  salesmen  should  not  converse  in  the  store  when  not 
waiting  on  customers,  simply  because  some  customers  may 
be  trading  within  sight  or  hearing  distance.  But  there  are 
some  customers  who  are  so  sensitive  that  visiting  among  the 
salesmen,  even  if  at  some  distance,  is  annoying.  Many  cus- 
tomers are  very  self-conscious  when  they  buy,  and  any  re- 
mark in  the  vicinity,  any  laughing,  or  even  a  smile  may  be 
interpreted  as  aimed  at  them.  This  happens  ever  so  much 
more  frequently  than  most  salespeople  think.  It  pays  to 
take  no  chances.  Visiting  among  salesmen  also  gives  to 
customers  the  impression  of  idleness.  Idleness  means  no 
business.  No  business  means  something  wrong.  The  cus- 
tomer's suspicion  about  goods  and  service  arises.  Once 
more,  it  pays  to  take  no  chances. 

105 


CHAPTER   X 
LEAKS  AND  LOSSES  IN  RETAIL  STORES 

Retail  store  leaks. — Efficiency  in  business  means,  for  one 
thing,  the  prevention  of  leaks  and  wastes.  This  is  an  ex- 
ceedingly important  topic  in  the  study  of  a  retail  business, 
for  no  matter  how  excellent  the  buying,  how  scientific  the 
advertising,  or  how  skillful  the  selling,  if  leaks  and  wastes 
are  not  watched  closely,  the  store  is  likely  to  run  behind. 

Gross  profit  is  the  difference  between  what  a  merchant 
pays  for  his  goods  and  what  he  sells  them  for.  But  out  of 
this  gross  profit  he  must  pay  all  the  expenses  of  the  busi- 
ness, the  salaries  of  the  salesmen  and  all  other  employes, 
advertising,  rent,  taxes,  insurance,  light,  heat,  telephone, 
delivery,  wrapping  materials,  breakage  and  spoilage,  repairs, 
alterations,  depreciation  of  merchandise,  depreciation  of 
buildings  and  equipment,  bad  debts,  stolen  goods,  and  so 
on.  Investigations  and  careful  accounting  methods  show 
that  the  net  profit  on  most  goods  is  very  small  after  all  of 
these  expenses  are  paid.  But  these  expenses  must  be  paid 
before  there  can  be  any  profit.  Now,  it  is  easy  to  see  that 
any  unusual  loss  or  leak  would  wipe  out  this  narrow  mar- 
gin of  net  profit  and  possibly  a  part  of  the  merchant's 
capital.  Success  in  store  management  in  some  places  de- 
pends entirely  upon  skill  in  avoiding  these  leaks  or  losses, 
and  in  this  the  salesmen  is  the  chief  factor.  By  his  methods1 
of  doing  business,  the  business  rises  or  falls. 

There  are  in  the  main  two  general  classes  of  retail  losses ; 

106 


LEAKS   AND   LOSSES    IN    RETAIL    STORES 

namely,  those  due  to  external  causes,  and  those  due  to  in- 
efficient store  management.  But  good  management  can 
avoid  losses  from  several  of  the  external  causes. 

Fire. — One  of  the  greatest  causes  of  loss  in  this  country 
is  fire.  Though  a  discussion  of  this  as  a  first  cause  of  loss 
in  a  textbook  on  salesmanship  may  seem  a  little  out  of 
place,  yet  salesmen  as  well  as  all  other  classes  of  citizens 
should  be  interested  in  wiping  out  this  enormous  yearly 
loss.  Examples  of  carefulness  in  this  regard  should  come 
from  good  business  houses  first  of  all.  For  the  year  1911 
the  fire  loss  amounted  to  over  $225,000,000  or  about  $2.50 
for  every  man,  woman,  and  child  in  the  United  States. 
This  rate  is  many  times  higher  than  in  any  other  civil- 
ized country.  In  France  the  annual  loss  is  about  thirty- 
three  cents  per  capita,  while  in  all  of  the  other  advanced 
countries  it  is  less  than  sixty  cents  per  year. 

Our  big  fire  loss  shows  several  things:  first,  that  we  do 
not  know  how  to  build  our  property  so  as  to  avoid  fires; 
secondly,  that  we  do  not  appreciate  the  value  of  our  property 
as  we  should,  or  we  would  take  steps  to  put  a  stop  to  this 
loss;  and,  thirdly,  that  our  education  upon  the  subjects  of 
saving,  conservation,  and  economical  living  is  inadequate. 
When  one  considers  how  American  people  permit  fires  to 
destroy  their  property — a  single  item  among  our  many 
wastes — one  does  not  wonder  that  the  cost  of  living  is  a 
live  question.  The  total  loss  by  fire  in  this  country  during 
the  last  thirty-three  years  amounts  to  $5,147,253,724.  This 
is  nearly  as  much  as  has  been  expended  for  all  kinds  of 
schools  and  education  in  the  country  during  the  same  period. 
If  this  amount  of  money  could  have  been  saved  and  placed 
at  six  per  cent,  interest,  the  income  would  pay  the  salary 
of  every  teacher  in  every  school  in  the  United  States  and 
still  leave  a  few  millions  to  spare  every  year. 

Yet  this  great  amount  of  wealth  was  largely  thrown  away 
by  carelessness.  It  is  well  agreed  that  if  people  would  only 

107 


RETAIL    SELLING   AND    STORE    MANAGEMENT 

stop  doing  senseless  things  and  would  practice  what  seems 
to  be  ordinary  common  sense,  at  least  fifty  per  cent,  of  the 
fire  loss  could  be  avoided.  It  rests  with  the  business  man 
and  the  schools  to  begin  at  once  a  program  of  education 
that  will  check  this  waste.  Such  education  will  consist  of 
an  analysis  of  the  causes  of  fires  and  a  study  of  the  methods 
of  avoiding  them. 

There  follows  a  table  of  the  principal  causes  of  fire — a  list 
that  should  be  studied  with  great  care.  To  be  forewarned 
is  to  be  forearmed.  Fire  prevention  is  a  part  of  every  citi- 
zen's duty. 

Causes  of  fires: 

1.  Matches 

carelessly  thrown  away  while  lighted, 
used  by  children, 
gnawed  by  rats  or  mice, 
exploded  by  weights  falling  upon  them, 
ignited  by  friction  in  pocket. 

"When  you  strike  a  match  you  start  a  fire ;  see  that  you 
put  it  out."  (Slogan  of  Portland,  Ore.,  Business 
Men's  Association.) 

2.  Chimneys  and   flues 

becoming  defective  by  cracking, 
with  accumulations  of  soot. 

3.  Stoves  and  stovepipes 

over-heating. 

"burned  out." 

improperly  protected  from  floors,  walls,  and  ceilings 

4.  Kerosene  lamps 

turned  down  low. 

filled  while  lighted. 

filled  with  other  lights  too  near. 

extinguished  by  blowing  down  the  chimney. 

rendered  defective  by  accumulations  of  sediment. 

108 


LEAKS   AND   LOSSES   IN    RETAIL    STORES 

5.  Starting  fires  with  kerosene  or  gasoline. 

6.  Keeping  gasoline  indoors  and 

filling  gasoline  stoves  while  lighted. 

mistaking  gasoline  for  kerosene. 

using  it  carelessly  in  cleaning  clothing. 

7.  Rubbish  and  sweepings. 

8.  Oily  and  other  waste  material. 

9.  Smoking. 

10.  Sparks  from  locomotives  and  other  engines. 

11.  Spontaneous  combustion. 

12.  Lighting. 

13.  Defective  boilers  and  fireplaces. 

14.  Defective  electric  wiring. 

15.  Inflammable  material  coming  into  contact  with  gas  jets. 

16.  Gas  explosions. 

17.  Celebrating  Fourth  of  July  with  explosives. 

18.  Christmas  trees  trimmed  with  candles  and  inflamma- 

ble materials. 

19.  Ashes  in  or  near  wooden  or  other  inflammable  ma- 

terial. 

20.  Bonfires. 

Fully  fifty  per  cent,  of  all  fires  are  preventable,  and 
twenty  per  cent,  may  be  traced  to  careless  housekeeping. 

From  the  standpoint  of  the  retail  business  the  first  es- 
sential precaution  is  sufficient  insurance.  This  sounds  com- 
monplace, but  experience  with  fire  losses  shows  that  deal- 
ers do  not  insure  their  stocks  adequately.  This  point  is  so 
important  that  wholesale  credit  men  almost  invariably  make 
inquiry  concerning  the  insurance  carried  by  a  store  apply- 
ing for  credit.  Too  low  insurance  is  often  a  contributing,  if 
not  a  determining,  factor  in  the  refusal  of  credit.  As  pre- 
cautions against  fire  loss,  the  heating  and  lighting  apparatus 
should  be  well  guarded.  Inflammable  goods  and  sub- 
stances should  be  stored  in  places  absolutely  secure  from 
fire.  Hot  air  pipes,  though  hardly  ever  the  source  of  a  fire 

109 


RETAIL   SELLING   AND    STORE    MANAGEMENT 

unless  a  flame  gets  into  them,  should  be  protected.  In  stores 
that  have  hot  air  heating  systems  with  floor  registers,  paper 
or  refuse  is  frequently  dropped  down  the  registers  into  the 
pipes  and  thence  to  the  top  of  the  furnace.  Some  day 
when  the  furnace  becomes  heated  red-hot,  this  refuse  is  set 
afire,  and  the  smoke  and  flames  shoot  up  through  the  ven- 
tilation system.  Gas  and  electric  light  pendants  should  be 
kept  free  from  hangings,  and  no  goods  should  be  stored 
within  three  feet  of  a  gas  flame.  Every  night  before  closing, 
it  should  be  the  duty  of  some  responsible  person  to  look 
through  the  entire  store  to  see  that  everything  is  safe. 
Many  a  fire  has  been  caused  by  smouldering  cigar  stumps, 
burning  lamps,  etc.  The  rules  of  insurance  underwriters' 
associations  regarding  wiring  and  heating  are  the  best  for 
the  merchant  in  the  long  run.  Though  the  insurance  in- 
spector and  his  orders  are  not  always  heartily  welcomed  by 
the  merchants,  his  rules  are  based  on  experience;  hence 
they  are  the  best  to  follow. 

Stealing. — Stealing  is  a  difficult  problem  in  any  store. 
There  are  three  classes  of  thieves.  First,  there  is  the  bur- 
glar or  house-breaker,  against  whom  the  store  must  provide 
watchmen,  bolts  and  locks,  iron  shutters,  and  burning  lights 
that  make  the  interior  visible  from  the  street.  Secondly, 
there  is  the  shoplifter,  the  false,  aimless  shopper  who  is  not 
anxious  to  have  a  clerk  wait  on  her  or  him,  but  who  has  deep 
capacious  pockets,  is  often  assisted  by  accomplices,  and  who 
uses  ingenious  methods  to  get  away  with  the  store's  goods. 
Against  these  the  watchfulness  of  the  store's  entire  force,  in- 
cluding, in  larger  places,  store  detectives,  must  be  utilized 
in  such  a  manner  as  to  catch  the  culprit,  and  also  to  keep 
any  feeling  of  restraint  or  suspicion  from  entering  the 
honest  store  visitor's  mind.  Thirdly,  there  is  the  pilfering  of 
dishonest  clerks.  With  modern  systems  of  checking  and 
accounting  in  a  store,  dishonest  employes  are  usually  found 
out,  sooner  or  later,  and  where  direct  evidence  cannot  be 

no 


LEAKS   AND  LOSSES   IN   RETAIL   STORES 

produced  against  them,  they  are  simply  dismissed  without 
explanations.  We  have  already  dealt  with  this  subject 
under  the  heading  "Honesty,"  from  the  standpoint  of  the 
employe.  The  employer  has  responsibility  in  the  matter 
also.  As  far  as  possible  he  should  protect  young  employes 
from  temptation.  He  needs  to  watch  his  employes  to  guide 
them  rightly.  He  owes  it  to  himself,  to  his  business,  and 
to  his  employes  to  know  how  the  latter  live,  how  they  spend 
their  leisure,  and  how  they  spend  their  money,  especially  if 
it  goes  into  any  form  other  than  necessities  or  investments. 
The  time  is  past  when  any  business  employe  can  say  that 
"it  is  no  one's  business  how  I  spend  my  leisure  time."  Such 
an  attitude  will  often  put  a  man  out  of  a  job,  and,  as  stand- 
ards climb,  this  will  be  even  more  true  in  the  future. 

Over-measurement. — Among  the  losses  due  to  ineffi- 
ciency, or  causes  over  which  salespeople  have  control,  are 
over-measurements  or  over-weights.  City  dealers  of  weights 
and  measures  often  find  scales  and  measures  that  give 
too  much,  as  well  as  those,  which  have  been  so  widely 
advertised  in  newspapers  and  magazines,  that  give  too  little. 
Carelessness  in  measuring  is  a  source  of  great  loss.  Con- 
sider that  in  the  sale  of  a  yard  of  cloth  at  a  dollar  there  is  a 
net  profit  after  all  expenses  have  been  paid  of  about  three 
cents.  This  is  not  an  unusual  case.  Now,  suppose  that  in 
selling  a  yard  the  salesman  gives  one  inch  of  over-measure 
— a  little  more  than  the  width  of  the  thumb.  What  is  the 
result?  One  inch  is  one  thirty-sixth  of  a  yard,  and  one 
thirty-sixth  of  a  dollar  amounts  to  nearly  three  cents. 
Where  has  the  net  profit  gone  to?  The  sale  might  as  well 
not  have  been  made.  When  customers  buy,  they  are  en- 
titled to  exactly  full  measure — no  more,  no  less.  Efficient 
sales  service  gives  just  this.  To  give  more  is  graft  for  the 
customer  and  loss  to  the  store.  To  give  less  is  graft  for 
the  store  and  loss  to  the  customer.  Both  are  double 
wrongs. 

ill 


RETAIL    SELLING   AND    STORE    MANAGEMENT 

Poor  care  of  merchandise. — Lack  of  care  of  merchan- 
dise, and  the  permitting  of  goods  to  rust,  to  become  dirty, 
wrinkled,  and  out  of  shape  are  sources  of  loss  that  can 
easily  wipe  out  the  profit.  Efficient  salespeople  will  handle 
the  goods  so  as  to  prevent  such  losses.  An  inefficient  win- 
dow-trimmer, for  example,  can  ruin  a  great  amount  of 
goods  by  misusing  the  goods  in  the  windows,  wrinkling 
them,  filling  them  full  of  pin  holes,  leaving  delicate  goods 
in  the  light  too  long,  handling  delicate  fabrics  with  soiled 
hands,  etc. 

Poor  packing. — Poor  packing,  the  kind  that  comes  untied 
or  allows  breakage  or  other  losses  is  another  leak  that  stores 
must  stop.  Proper  packing  involves  the  right  kind  of  pa- 
per, twine,  boxes,  and  other  material.  Time  may  be  saved 
by  having  all  of  these  things  placed  in  orderly  arrangement 
close  to  where  they  are  to  be  used  so  as  to  prevent  waste  of 
time  in  hunting  for  them. 

Waste  of  supplies. — Improvident  use  of  supplies,  such  as 
wrapping  paper,  twine,  boxes,  bags,  etc.,  is  another  source 
of  loss.  For  example: 

1.  The  use  of  large  sheets  of  wrapping  paper,  when 
smaller  sheets  would  prove  ample. 

2.  The  careless  dropping  of  fresh  wrapping  paper  to  the 
floor  to  be  trampled  on. 

3.  The  winding  of  numerous  strands  of  cord  around  a 
package,  when  a  less  number  would  protect  the  bundle. 

4.  The  throwing  away  of   useful   lengths   of   cord  or 
rope. 

5.  The  habit  of  picking  up  a  letter-head  or  other  ex- 
pensive piece  of  paper  to  figure  on  when  a  small  pad  or  bit 
of  discarded  paper  would  answer  all  requirements. 

6.  The  throwing   into  the   wastebin   of   slightly   soiled 
cartons  that  could  be  used  to  replace  others  that  are  shop- 
worn or  to  pack  merchandise  for  delivery,  for  which  boxes 
are  not  specially  made  but  must  be  provided. 

112 


LEAKS   AND   LOSSES    IN    RETAIL   STORES 

7.  The  loss  entailed  by  being  careless  of   dust  rags, 
brooms,  and  brushes. 

8.  The  throwing  away  of  pins  that  could  very  conveni- 
ently be  placed  on  a  cushion. 

9.  The    dropping   of    rubber    bands,    pin    tickets,    tags, 
etc.,  the  picking  up  of  which,  to  many,  is  Oh!  so  much 
trouble. 

Unsalable  stock. — Shopworn  goods  and  accumulations  of 
remnants  and  of  dead  stock  are  other  sources  of  bad  losses. 
Careful  salesmanship  will  prevent  all  three.  Remnants  can 
be  avoided  to  a  certain  extent  by  keeping  track  of  the  goods 
on  hand,  and  by  selling  only  in  wholes  the  pieces  that 
are  close  to  the  remnant  stage.  Dead  stock  is  prevented 
by  pushing  the  "stickers"  forward  and  marking  them  down 
to  a  price  that  will  move  them.  Mark-downs  may  not  even 
be  necessary  if  the  poor  moving  stock  is  simply  given 
advantageous  locations  and  some  attention  by  the  salesmen. 

Waste  of  light. — There  is  danger  of  wastes  in  light,  es- 
pecially where  it  is  turned  on  in  out-of-the-way  places,  down 
in  the  basement,  in  the  stock  room  or  elsewhere,  and  then 
forgotten.  Each  salesman  should  establish  the  habit  of  elim- 
inating all  such  useless  leaks.  Where  artificial  light  is  used, 
it  costs  something  for  every  moment  that  it  burns.  There 
should  be  no  economizing  where  light  is  needed,  but  where 
it  is  not  needed,  it  is  waste  to  use  it. 

Leaky  packages. — Merchants  are  usually  careful  about 
their  use  of  leaky  barrels  and  cracked  boxes — packages  that 
permit  losses  to  occur  in  one  form  or  another.  Yet  this 
is  a  source  of  loss  in  nearly  every  store  to  a  certain  extent. 

Vermin. — Rats,  mice,  and  other  vermin  destroy  great 
values  of  goods  every  year  all  over  the  country.  A  modern 
store  will  plan  to  keep  out  such  vermin  or  at  least  to  destroy 
them  as  soon  as  they  enter.  This  is  a  small  detail  that 
means  a  great  deal  in  the  long  run. 

"3 


RETAIL    SELLING   AND    STORE    MANAGEMENT 

Losses  due  to  delivery  department. — The  delivery  de- 
partment is  responsible  for  a  number  of  losses  to  the  store, 
due  to  the  following: 

1.  Goods  lost  in  transit. 

2.  Goods  damaged  in  the  wagons. 

3.  Damage  to  the  wagons  or  other  parts  of  the  deliv- 
ery equipment  caused  by  careless  driving. 

4.  Poor  care  of  the  equipment  and  consequent  rapid 
deterioration. 

5.  Carelessness  in  routing  and  consequent  loss  of  time 
in  making  the  deliveries. 

6.  Wrong  deliveries  due  to  wrong  addresses  or  to  the 
misreading  of  addresses. 

7.  Improper  use  of  time. 

8.  Lost   containers'   baskets,   crates,   boxes,   jugs,   rug 
poles,  etc. 

These  losses  are  only  the  common  ones.  To  know  what 
they  are  is  to  know  what  to  do  about  them.  Delivery  expense 
for  general  merchandise  storage  averages  in  cost  to  the  store 
from  two  cents  up  to  nearly  twenty-five  cents  per  delivery. 
This  difference  in  extremes  is  due  largely  to  differences  in 
efficiency  in  the  delivery  departments. 

Care  of  delivery  equipment. — Recently  the  Standard 
Oil  Company  established  a  measure  of  the  efficiency  of  its 
teamsters  throughout  the  entire  country  by  requiring  weekly 
reports  showing  the  weight  of  the  horses.  The  purpose  of 
the  company  was  to  check  carelessness  on  the  part  of  the 
teamsters  in  their  care  of  the  horses.  It  was  thought  that 
this  would  have  a  two-fold  result.  In  the  first  place,  the 
horses  would  be  kept  in  better  condition;  they  would  be 
able  to  do  more  work,  and  there  would  be  less  sickness 
among  them.  Loss  of  weight  is  an  excellent  premonitory 
symptom  of  loss  of  good  health.  In  the  second  place,  the 
result  would  no  doubt  be  better  looking  horses.  Well-fed, 
sleek,  lively  horses,  and  good,  well-painted,  well-kept  wag- 

114 


LEAKS   AND   LOSSES    IN    RETAIL    STORES 

ons  have  much  advertising  value  that  a  retail  store  as  well 
as  the  Standard  Oil  Company  cannot  afford  to  lose. 

Salesmen's  errors. — Salesmen's  errors  are  frequent 
causes  of  losses  in  retail  stores.  Among  the  common 
errors  that  are  avoided  by  careful  salesmen  are  the  follow- 
ing: 

1.  Penmanship  so  poor  that  time  is  lost  in  reading  it. 

2.  Writing  down  wrong  addresses  when  deliveries  are 
to  be  made  by  the  store.     The  salesman  should  be  very 
careful  to  get  the  exact  address — the  exact  spelling  of  the 
name  of  the  customer,  the  name  of  the  street,  and  the  ex- 
act number.     There  should  be  no  guess  work. 

3.  Making  change  incorrectly. 

4.  Failing  to  assemble  and  list  all  the  items  purchased. 

5.  Mistakes  in  addition.     (Common,  but  easy  to  remedy 
if  the  salesman  will  take  the  time  to  learn  to  add.) 

6.  Failure  to  charge  the  sale,  if  made  on  account. 

7.  Mistakes    in    computing    discounts    when    they    are 
offered  on  sales  days  or  at  other  times. 

Waste  of  time. — Some  salesmen  take  too  much  time  in 
doing  the  routine  work  of  the  store.  Here  is  a  chance  for 
studying  scientifically  the  easiest  and  quickest  ways  of 
doing  things.  One  of  the  first  essentials  is  to  work  method- 
ically. Find  out  which  is  the  best  way  to  clean  the  cases 
or  shelves,  replenish  the  stock,  wrap  a  parcel,  or  whatever 
else  is  to  be  done;  and  then  practice  doing  the  work  that 
way  rapidly  and  well.  There  is  sometimes  waste  of  time  in 
selling.  A  customer  should  be  sold  as  quickly  as  possible, 
although  under  most  circumstances,  it  would  be  wrong  to 
hurry  her.  The  selling  should  be  all  business  from  start  to 
finish.  There  is  another  form  of  waste  of  time  that  needs 
mention,  and  that  is  the  waste  due  to  tardiness  and  slow- 
ness in  getting  at  the  work  of  the  day.  Time  is  worth 
money — every  minute  of  it.  Waste  of  time  is  like  throw- 
ing money  away. 


RETAIL    SELLING    AND    STORE    MANAGEMENT 

Waste  of  labor. — Every  salesman  wastes  some  energy. 
Some  waste  most  of  their  energy  in  doing  things  in  the 
wrong  way,  the  long  way,  or  the  hard  way.  As  in  the 
case  of  saving  time,  the  salesman  should  plan  his  work, 
think  while  doing  it,  and  figure  on  the  best  ways  of  doing 
it.  Each  move  should  count. 

Sales  that  do  not  stick. — A  salesman  should  attempt  to 
make  the  sale  permanent  at  the  time  of  the  demonstration. 
This  cannot  always  be  done;  hence  exchanges  and  re- 
turns must  be  provided  for.  But  while  these  are  necessary 
to  the  welfare  of  the  business,  it  must  be  remembered  that 
the  customer  who  is  fully  satisfied  at  the  start  and  who  stays 
satisfied,  and  not  the  one  who  makes  exchanges,  is  the  one 
who  pays  net  profits  to  the  house.  Some  salesmen  forget 
this  and  take  chances  on  the  exchange  office  to  complete  their 
sales.  Every  exchange  is  an  added  expense,  as  is  also  the 
return  of  goods. 

Ignorance  of  stock. — Lack  of  knowledge  of  stock  results 
in  waste  of  time,  labor,  and  loss  of  customers.  Time  and 
labor  are  wasted  just  when  they  are  most  valuable — when 
the  customer  is  at  hand.  And  customers  leave  because  they 
think  that  the  salesman  does  not  have  that  which  he  can- 
not immediately  find.  The  salesman  should  know  his  stock 
as  a  stenographer  knows  a  typewriter  keyboard.  He  should 
be  able  to  find  just  what  he  wants  without  hesitation.  A 
salesman  with  such  knowledge  cannot  be  spared  from  the 
business. 

Customers  who  do  not  come  back. — It  is  well  under- 
stood among  business  men  that  in  these  days  of  expensive 
advertising,  the  first  orders  often  do  not  pay  even  the  ex- 
penses. It  is  the  "repeat  orders"  that  yield  the  net  profits. 
A  store's  business  must  be  built  in  most  cases  upon  the 
regular  trade  of  regular  customers.  When  a  customer 
does  not  come  back,  the  store  has  lost  a  profit  that  is  pro- 
portionate to  the  business  that  this  one  customer  may  in- 

116 


LEAKS   AND   LOSSES    IN    RETAIL    STORES 

fluence.  It  may  be  only  her  own  trade.  It  may  mean  the 
trade  of  several  families;  and  the  trade  of  each  family 
may  amount  to  from  $10  up  to  $50  net  profit  every  year. 
When  good  customers  do  not  come  back,  it  is  usually 
because  of  discourtesy  on  the  part  of  some  one  in  the  store, 
misunderstanding,  or  poor  goods.  Good  salesmanship  at- 
tempts to  avoid  all  three.  Courtesy  cannot  be  over-empha- 
sized. It  is  a  most  vital  element  in  business.  Misunder- 
standings are  likely  to  happen  anywhere,  but  the  good  sales- 
man will  go  much  farther  than  half  the  way  to  clear  them 
up.  Imperfect  goods  should  never  leave  the  store  unless 
imperfection  is  fully  explained  to  the  customer.  Such  pol- 
icies will  help  to  hold  trade. 


CHAPTER   XI 
WINDOW  DISPLAY  AND  OTHER  AIDS  IN  SELLING 

Helps  for  the  salesman. — So  far,  we  have  considered  the 
salesman  and  his  work  solely  by  themselves.  We  have  rep- 
resented him  as  making  sales  without  assistance  of  any  kind 
except  the  appeal  of  the  goods  to  the  customer.  In  most 
stores,  however,  the  salesman's  battle  is  not  nearly  so  lonely 
as  this.  The  store  is  generally  constructed  as  advanta- 
geously as  possible  for  the  selling.  The  goods  are  appro- 
priately displayed  on  counters,  shelves,  and  other  fixtures. 
The  windows  are  used  to  call  the  attention  of  the  passer- 
by to  the  qualities  and  prices  of  articles  in  such  a  way  as 
to  appeal  to  all  possible  customers.  And  the  salesman's 
power  is  increased  in  range  by  the  use  of  newspaper  and 
other  forms  of  advertising. 

Two  important  principles. — In  the  plans  made  for  a 
store  there  are  two  principles  that  must  be  held  to  con- 
stantly. The  first  is  that  everything  attempted  should  serve 
the  main  purpose  of  the  business,  and  the  second  is  that 
every  store  activity  should  be  so  directed  as  to  meet  with 
popular  approval  or  satisfaction.  The  retail  store  is  a  selling 
institution.  Its  main  purpose  is  to  serve  the  public  by  sell- 
ing to  it  such  goods  as  are  needed  in  the  line  that  the  store 
has  chosen  to  carry.  Since  its  purpose  is  to  sell,  every  plan 
for  the  store,  every  improvement,  should  be  made  to  aid 
directly  or  indirectly  in  selling.  The  appearance  of  the 
store,  the  internal  arrangement,  the  goods  display,  the  win- 

118 


WINDOW   DISPLAY   AND   AIDS    IN    SELLING 

dow  display,  and  the  advertising  in  a  retail  business  exist 
only  for  one  reason — to  assist  in  the  sale  of  goods  to  the 
public. 

Importance  of  manner  of  selling. — People  need  goods, 
and  they  want  to  buy  goods,  but,  as  we  have  seen,  the  'way 
in  which  these  goods  are  sold  is  important  to  them.  Not 
only  that,  but  the  way  in  which  their  attention  is  called  to 
the  goods  by  advertising  or  window  display  and  the  sur- 
rounding conditions  at  the  time  the  sale  is  made,  are,  as 
most  merchants  will  now  agree,  very  important  factors. 

The  application  of  psychology. — These  helps  for  the 
salesmen,  then,  must  be  contrived  to  fit  human  nature  and 
to  fit  human  nature  in  the  most  agreeable  manner.  Selling 
is  largely  a  matter  of  creating  a  favorable  impression  in  the 
mind  of  the  customer.  The  salesman  who  is  a  practical 
psychologist  works  insistently  toward  this  end.  His  task 
is  much  easier  if  he  has  been  given  good  assistance — if  the 
advertising  and  display  have  been  so  well  done  as  to  have 
created  a  good  impression  before  the  sale  over  the  counter 
begins.  These  helps — advertising,  window-trimming,  store 
appearance,  and  store  display — like  salesmanship  itself,  are 
based  upon  psychology,  and  the  principles  that  we  found 
true  for  selling  will  be  found  equally  true  in  their  application 
to  these  helps. 

The  salesman  and  his  interests. — The  most  tangible 
forms  of  salesmen's  helps  are,  perhaps,  newspaper  adver- 
tising, window  display,  and  the  display  of  goods  inside  the 
store.  The  average  salesman  may  have  little  supervision 
over  some  of  these  helps,  but  certainly  he  has  an  immediate 
interest  in  goods  display  inside  the  store ;  and,  just  as  cer- 
tainly, he  will  be  a  better  salesman  if  he  takes  an  intelligent 
interest  in  the  other  activities  of  the  store  that  are  designed 
to  aid  him  in  his  work. 

Underlying  all  forms  of  display,  and  also  underlying 
many  other  kinds  of  helps  in  selling,  there  are  certain  prin- 

119 


RETAIL    SELLING    AND    STORE    MANAGEMENT 

ciples  that  are  applied,  either  consciously  or  unconsciously, 
by  those  who  are  most  successful  in  the  various  activities 
of  a  retail  store.  Before  the  several  important  kinds  of 
helps  in  selling  are  considered  in  any  detail,  we  shall  lay 
the  foundation  for  them  by  considering  some  of  the  prin- 
ciples that  must  be  applied  if  the  salesmen's  helps  are  to  be 
as  effective  as  they  might  be. 

Art  in  business. — Arrangement  of  material — whether  of 
drygoods,  hats,  stationery,  ornaments,  hardware,  or  any- 
thing else — or  the  writing  of  an  advertisement  for  a  paper 
so  as  to  appeal  favorably  to  the  human  eye,  must  not  de- 
part from  certain  principles.  There  are  great  differences 
among  individuals  as  to  their  likes  and  dislikes,  but  there 
are  certain  points  at  which  most  minds  come  together. 
These  have  been  referred  to  as  instincts.  No  one  knows 
why  certain  combinations  or  lines  or  forms  are  agreeable, 
while  others  are  disagreeable ;  nor  why  certain  combinations 
of  color  are  agreeable  or  disagreeable  to  nearly  all  people. 
Psychologists  have  not  yet  solved  these  questions.  But 
the  facts  are  evident,  and  the  application  of  these  facts  con- 
stitutes art.  Painting,  sculpture,  and  architecture  yield 
beautiful  creations  that  everybody  enjoys  because  the  artists 
know  the  principles  well  and  can  apply  them.  The  purpose 
of  the  salesman  and  the  advertiser  is  different  from  the  ar- 
tist's, but  the  more  art  a  man  puts  into  his  arrangement  of 
goods  or  into  the  preparation  of  his  advertising,  in  so  far 
as  it  does  not  hide  his  main  purpose  of  making  sales  the 
more  successful  will  he  be  in  making  a  favorable  impression. 
It  is  likely  that  there  can  be  too  much  fine  art — for  ex- 
ample, in  a  background  of  a  window  display.  In  such  a 
case  the  people  will  look  at  the  background  and  not  at  the 
goods  in  front  of  it.  But  disregard  of  art  in  the  arrange- 
ment of  the  background  will  likewise  draw  attention  to 
the  background  rather  than  to  the  goods,  and  the  result  will 
then  be  disagreeable  to  the  onlooker.  He  will  not  see  the 

120 


WINDOW   DISPLAY   AND   AIDS    IN    SELLING 

goods,  for  he  will  turn  away  at  once  and  walk  on.  Art 
needs  to  be  applied  in  such  an  unobtrusive  way  as  to  be 
itself  inconspicuous,  but  so  as  to  set  off  the  goods  to  be  sold 
to  the  best  advantage. 

Principles  of  art. — We  can  only  suggest  briefly  some  of 
the  principles  of  art  and  their  applications  to  retail  selling. 
To  go  into  detail  would  require  a  volume  on  window  dis- 
play alone  and  other  volumes  on  advertising  and  store  ar- 
rangement and  display.  The  purpose  here  is  to  give  a 
sufficient  knowledge  of  these  principles  to  enable  the  store 
salesman  to  apply  them  himself  in  the  arrangement  of  goods 
in  his  department,  and  to  enable  him  to  have  some  under- 
standing of  the  work  of  the  professional  window-trimmer 
and  of  the  professional  advertising  man.  For  those  who 
wish  to  carry  the  study  further,  there  are  many  good  books 
on  the  subject. 

Harmony. — The  first  principle  of  art  applicable  to  mer- 
chandising is  this :  In  all  arrangements  of  fixtures,  goods, 
ornaments,  and  so  on,  there  should  be  harmony.  The 
tests  of  harmony  are  two — efficiency  or  usefulness,  and 
beauty.  Applying  this  principle  to  the  store,  we  may  say 
that  every  article  or  fixture  therein  must,  first  of  all,  be 
useful — the  more  useful,  the  better;  second,  it  should  be 
as  pleasing  in  appearance  as  possible,  considering  its  pur- 
pose. The  goods  you  have  for  sale  that  most  nearly  com- 
ply with  this  principle  sell  the  most  readily.  No  matter 
what  the  fashion  may  be,  the  instinct  for  harmony  is  al- 
ways more  or  less  present;  and  appeals  to  points  of  use- 
fulness and  beauty,  closely  related,  are  not  likely  to  be 
amiss. 

Order. — A  second  principle  of  art  is  that  of  order. 
Nearly  every  one  has  an  instinct  that  causes  him  to  admire 
orderly  arrangement — "a  place  for  everything  and  every- 
thing in  its  place."  This  instinct  is  likely  to  be  particularly 
strong  among  the  successful  classes  of  people,  and  possibly 

121 


RETAIL    SELLING   AND    STORE    MANAGEMENT 

there  is  some  significance  in  this  connection.  The  order 
instinct  may  have  been  one  reason  for  their  success.  Good 
order  permits  the  eye  to  begin  at  some  definite  point  and 
then  to  trace  its  way  onward  easily.  It  is  always  noticeable 
that  goods  sell  better  when  arranged  in  order  than  when 
thrown  into  a  jumbled  heap.  Ordered  arrangement  tempts 
the  eye  to  look;  disorder  tires  the  eye,  and  the  customer 
moves  on.  In  the  best  ordered  arrangement  of  stock  or  of 
displays  of  goods  on  a  counter,  on  a  rack,  or  in  a  window, 
one  article  leads  to  another.  The  eye  is  drawn  on  and  on 
to  see  the  whole.  The  object  is  clear.  Somewhere  in  the 
display  there  may  be  just  the  article  that  will  rouse  the 
interest  and  desire  of  the  customer. 

Meaning. — A  third  principle  of  art  is  that  every  arrange- 
ment or  display  should  have  meaning.  It  should  stand  for 
some  one  thing ;  in  other  words,  it  should  express  something. 
To  show  a  man's  shoe,  a  hammer,  a  piece  of  soap,  and  some- 
barn  paint  in  the  same  display  means  no  one  thing;  it  is 
simply  a  mass  of  unrelated  objects.  There  is  much  dis- 
play to  be  found  in  stores  that  means  just  as  little  to  the 
average  onlooker.  As  an  illustration  of  display  with  mean- 
ing, consider  a  window  that  contains,  for  example,  a  great 
variety  of  household  articles,  such  as  paring  knives,  strain- 
ers, enameled  ware,  measures,  spoons,  kitchen  knives,  cake- 
tins,  etc.  Meaning  is  evident.  To  everyone  and  especially 
the  housekeeper,  there  is  suggested  the  needs  of  the  kitchen. 
The  housekeeper  will  look  to  see  if  there  is  some  new  article 
to  be  had  that  will  serve  her  better  than  her  home  equipment. 
In  other  cases  there  will  be  recalled  the  need  for  articles 
that  have  been  broken,  lost,  or  worn  out  in  the  home.  Al- 
though, as  has  been  stated,  this  sort  of  display  does  have 
meaning,  the  meaning  may  be  somewhat  weakened  by  the 
great  variety.  Good,  orderly  arrangement  will  assist  in  mak- 
ing the  meaning  clear.  If  the  window  could  be  trimmed  so  as 
to  represent  a  miniature  kitchen,  completely  equipped,  with 

122 


WINDOW   DISPLAY   AND   AIDS    IN    SELLING 

everything  in  its  place,   the  meaning  would  become   still 
more  obvious. 

On  the  other  hand,  a  different,  but  strong  meaning  could 
be  given  to  such  a  display  by  suspending  a  card  centrally 
over  all  with  some  such  inscription  as  the  following: 


Any  Article  in  this  Window 

lOc 
Come  In 


Meaning  is  given  to  displays  by  building  them  around  sea- 
sonal and  other  interesting  events  in  the  community.  Au- 
tumn, winter,  Easter,  spring,  summer,  holidays,  weddings, 
work,  and  sport — all  suggest  the  need  of  various  kinds  of 
goods  to  various  classes  of  people.  Advertising  and  win- 
dow display  become  significant  and,  therefore,  interesting 
to  the  prospective  customer  when  the  display  suggests  these 
seasons  or  events.  The  train  of  thought  suggested  returns 
in  a  moment  to  the  idea  of  the  need  for  the  goods.  This 
may  be  the  first  time  that  the  customer  has  thought  of  his 
need.  The  advertising  or  display  has  set  him  thinking.  A 
sale  is  likely  to  follow. 

Displays  without  meaning  may  not  be  entirely  valueless 
though  they  are  almost  always  uninteresting.  They  may 
serve  at  least  one  useful  purpose;  namely,  to  notify  the 
public  that  the  store  has  the  displayed  goods  on  sale.  This 
is  something  but  it  is  neither  art  nor  salesmanship.  Mean- 
ingless display  brings  in  no  customers  except  those  who 
have  of  their  own  accord  discovered  their  needs.  Artists 
carry  this  principle  to  the  extent  that  every  line,  color,  orna- 
ment, form,  or  arrangement  must  have  meaning.  Applica- 

123 


RETAIL    SELLING    AND    STORE    MANAGEMENT 

tion  of  this  principle  to  selling  cannot  fail  to  be  of  great 
value. 

Lines. — It  will  be  remembered  that  every  impression  made 
on  the  mind  produces  some  kind  of  feeling,  either  of  pleas- 
ure or  of  displeasure.  Even  so  simple  a  thing  as  the  sight  of 
a  line  creates  some  responsive  feeling.  Though  the  effect  of 
one  line  may  be  very  slight,  the  effect  of  continuous  impres- 
sions from  lines  is  sure  to  be  felt  either  as  agreeable  or  as 
disagreeable.  Different  kinds  of  lines  have  different  effects. 
Horizontal,  straight,  clearly  defined  lines  give  the  impression 
of  quiet  and  peace  or  rest ;  vertical  lines  produce  a  feeling 
of  reliability ;  diagonal  or  oblique  lines  suggest  movement  or 
action.  A  broken  line  gives  the  feeling  of  interest,  but  if  its 
breaks  are  frequent  and  the  directions  taken  are  monoto- 
nously similar,  the  interest  grows  into  irritation.  A  thin, 
ripply,  broken  line  makes  many  persons  nervous.  But  a 
gently  waving  line  is  the  most  attractive  of  all.  Artists  say 
there  is  more  formal  beauty  in  the  letter  S  than  in  any  other 
letter  because  it  is  made  up  of  such  waves. 

These  facts  become  significant  when  we  stop  to  think 
that  every  fixture  is  bounded  by  lines.  Our  goods  are 
arranged  in  lines;  the  patterns  in  the  goods  and  the  out- 
line shapes  of  the  goods  are  lines.  It  is  easy  to  see  that  the 
mental  effects  on  a  customer  who  sees  the  various  kinds  of 
lines  mentioned,  may  be  such  as  to  cause  the  sale  to  succeed 
or  fail. 

Surfaces. — Among  the  various  shaped  surfaces,  the 
square  and  circle  are  the  least  interesting.  Variations  of 
the  circle  into  ellipses  and  ovals  may  become  very  pleasing. 
Curved  figures  are,  on  the  whole,  more  pleasing  than 
straight  line  figures.  Of  four-sided  figures,  the  oblong  is 
the  most  pleasing,  and  careful  experiments  have  shown  that 
this  form  looks  best  when  the  length  is  about  one  and  two- 
thirds  times  the  width.  This  is  found  to  be  true  for  nearly 
all  people,  so  this  shape  has  been  called  the  "golden  sec- 

124 


WINDOW   DISPLAY   AND   AIDS    IN    SELLING 

tion."  Illustrations  of  its  many  uses  may  be  seen  in  call- 
ing cards,  envelopes,  pictures,  show  cards,  book  pages, 
magazine  and  newspaper  pages,  advertising  copy,  table  tops, 
window  frames,  window  display,  units,  etc. ;  and  in  archi- 
tecture it  appears  in  a  hundred  different  ways.  The  man 
who  is  going  to  plan  or  arrange  displays,  fixtures,  or  furni- 
ture for  a  store  will  find  a  study  of  the  adaptation  of  the 
"golden  section"  of  practical  value.  There  are  other  shapes 
that  are  attractive  in  appearance,  but  none  that  are  so  gen- 
erally applicable  in  so  many  directions. 

Masses. — The  art  principles  affecting  the  arrangement  of 
masses  are  closely  applicable  to  the  display  of  goods.  The 
sphere  and  the  cube,  like  the  circle  and  the  square,  are 
generally  dull  and  uninteresting  forms;  hence  few  group- 
ings of  goods  in  such  units  should  be  attempted.  The  tri- 
angle and  the  star  are  good  forms  and  are  often  used ; 
equally  good,  of  course,  are  the  pyramid  and  cone.  Per- 
haps these  last  two  forms  are  in  most  common  use. 

Balance. — In  all  arrangement  of  lines,  surfaces,  or 
masses,  whenever  more  than  one  group  is  attempted, 
there  should  be  such  placing  as  to  get  balance  or  symmetry. 
The  show  case  that  has  all  the  goods  piled  on  one  end 
lacks  balance,  as  does  the  window  that  has  its  heaviest 
trim  too  far  from  the  middle.  The  principle  of  good  balance 
can  be  applied  wherever  stock  is  laid  down  or  displayed.  It 
is  a  principle  of  constant  application  in  all  good  window 
displays  and  in  all  good  advertising,  no  matter  what  the 
medium. 

Possibly  to  some  it  may  seem  impractical  to  deal  with 
the  refinements  of  art  in  a  business  like  retail  selling.  If 
this  thought  is  in  anyone's  mind,  let  him  remember  this: 
The  man  who  is  successful  in  store  display,  in  window 
trimming,  or  in  any  of  the  allied  activities  of  a  store,  al- 
ways applies  the  common  principles  of  art  in  his  daily 
work.  If  he  does  not  apply  them,  he  is  not  successful. 

125 


RETAIL  SELLING  AND  STORE  MANAGEMENT 

He  may  not  know  that  he  is  applying  them;  he  may  never 
have  studied  them;  he  may  use  them  unconsciously.  But, 
consciously  or  unconsciously,  he  applies  them;  for  suc- 
cess in  his  work  is  founded  on  them.  This  is  not  debatable. 
It  is  an  undoubted  fact.  Therefore  some  study  of  art 
principles  is  very  much  worth  while  for  every  salesman 
who  wants  to  advance. 

Effect  of  colors. — We  have  seen  that  lines,  surfaces,  and 
masses  have  certain  mental  effects.  The  same  thing  is 
true  of  colors.  Colors  have  a  direct  effect  on  the  feel- 
ings. Various  tests  have  been  made  to  see  what  colors,  if 
any,  might  be  called  the  favorites  of  most  people.  The 
results  are  not  conclusive,  but  both  red  and  blue  rank  high 
in  the  list.  For  wearing  apparel,  black  and  blue  predomi- 
nate, but  this  may  be  due  largely  to  custom.  It  seems 
that  almost  any  color  can  be  made  attractive  to  most  people 
by  using  it  in  the  right  quantity  and  in  combination  with 
other  colors  of  the  right  kinds. 

Light  is  always  agreeable. 

Glitter,  gleam,  and  luster  always  attract  attention,  and 
gold  is  a  color  that  "goes  well  with  anything." 

Red  is  a  warm,  exciting  color,  and  people  think  of  it  as 
a  symbol  of  blood,  battle,  love,  and  action. 

Yellow  is  the  brightest  of  all  the  colors.  It  is  joyous 
and  uplifting.  It  also  is  exciting;  but  it  symbolizes  dis- 
honor and  jealousy. 

Green  is  cool,  hopeful,  and  inspiring,  a  symbol  of  spring. 
It  is  appreciated  much  more  in  cities  than  in  the  country, 
and  more  in  spring  than  at  any  other  time. 

Blue  is  cool,  calm,  deep,  still,  and  solid.  It  is  the  symbol 
of  constancy. 

White  impresses  one  with  the  feeling  of  quiet  joy,  and 
suggests  symbolically  the  idea  of  purity. 

Gray  is  sober  and  quiet.  It  suggests  neatness,  delicacy, 
and  refinement. 

126 


WINDOW   DISPLAY  AND   AIDS   IN    SELLING 

Black  is  melancholy  and  sober,  but  of  great  strength. 
It  is  a  symbol  of  grief  and  death.  No  color  has  so  much 
power  to  impress  as  black.  Black  and  white  in  contrast  is 
the  most  easily  and  clearly  distinguishable  of  combinations. 

Color  harmony. — To  assist  the  salesman,  window  trim- 
mer, or  decorator  in  grouping  his  goods  and  colors  in  the 
most  effective  manner,  Plate  II  shows  a  complete  color 
chart  indicating  the  results  of  combining  any  two  ordinary 
colors. 

Optical  illusion. — There  are  certain  optical  illusions  of 
which  the  store  decorator  or  trimmer  should  be  aware. 
For  example,  yellow  is  about  twelve  times  more  forceful  in 
carrying  power  than  blue.  Because  yellow  is  the  brightest 
color,  a  little  of  it  goes  a  long  way  with  other  colors. 
Red,  orange,  yellow,  and  to  some  extent  brown  and  green, 
are  colors  that  seem  to  come  near  to  the  eyes — nearer  by 
thirty  per  cent,  than  white.  Blue,  gray,  blue-green,  and 
violet  are  colors  that  recede  from  the  eyes.  As  an  illus- 
tration of  this  principle,  a  room  with  red  walls  appears 
smaller  than  it  really  is,  while  a  room  finished  in  blue 
will  appear  considerably  larger  than  it  really  is.  Every- 
one should  know  that  large  patterns  tend  to  appear  nearer 
than  small  ones.  Vertical  lines  make  height  appear  greater 
than  it  really  is,  while  horizontal  lines  shorten  the  appear- 
ance of  height.  A  true  square  does  not  appear  to  the  eye  to 
be  square,  and  is,  therefore,  not  so  pleasing  as  one  that 
is  only  apparently  true.  By  making  the  two  sides  slightly 
shorter  than  the  top  and  bottom,  the  matter  will  be  reme- 
died. There  is  always  a  tendency  to  over-estimate  the 
height. 

Effective  display  and  store  helps. — In  the  preceding 
paragraphs  a  few  of  the  principles  that  underlie  effective 
display  have  been  suggested.  They  are  all  worthy  of  trfe 
salesman's  careful  study.  In  this  text  they  cannot  be  treated 
in  detail.  The  purpose  in  suggesting  them  has  been  to 

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WINDOW   DISPLAY   AND   AIDS    IN    SELLING 

arouse  interest  in  them,  to  show  their  importance,  and  to 
indicate  to  the  ambitious  salesman  one  field  of  further 
study  that  will  pay  rich  dividends. 

The  principles  of  art  and  display  find  their  application 
in  the  various  kinds  of  salesmen's  helps  that  were  mentioned 
at  the  beginning  of  the  chapter.  One  of  them — newspaper 
and  other  forms  of  periodical  advertising — is  treated  in 
some  detail  in  a  later  chapter.  A  few  of  the  other  sales- 
men's helps  are  suggested  in  the  following  paragraphs.  In 
the  case  of  some  of  them,  the  opportunity  of  applying  the 
principles  of  art  may  seem  very  remote;  sometimes,  of 
course,  these  principles  cannot  be  applied  at  all;  but  in 
most  of  the  salesmen's  helps  the  principles  that  we  have 
been  considering  have  a  very  real  and  very  obvious  appli- 
cation. 

The  store's  location. — The  first  of  the  salesmen's  helps 
is  an  advantageous  location  for  the  store.  The  number  of 
people  who  visit  a  store,  the  interest  with  which  they  will 
view  its  offerings,  the  ease  with  which  the  salesman  will 
be  able  to  appeal  to  them — all  these  things  depend  first 
upon  whether  the  store  is  advantageously  situated  or  not. 
Several  large  companies,  especially  the  chain  store  syndi- 
cates— five-  and  ten-cent  stores,  cigar  stores,  grocery  com- 
panies, and  restaurants — station  men  to  count  all  passers- 
by  at  each  place  under  consideration  for  lease  or  purchase. 
The  time  at  which  the  count  is  made  and  the  period  for 
which  it  is  continued  are  carefully  selected  so  as  to  show 
what  is  the  average  or  normal  number  of  people  passing 
the  location  during  a  given  period.  Such  investigations 
frequently  extend  over  several  days  so  as  to  make  sure  of 
a  fair  average  per  day. 

Besides  numbers,  these  stores  also  investigate  the  char- 
acter of  the  people  who  pass  by,  their  object  in  passing  the 
given  place,  whether  the  reason  is  permanent  or  merely 
temporary,  the  economic  position  or  wealth  of  the  passers- 

129 


RETAIL    SELLING   AND    STORE    MANAGEMENT 

by,  and  their  purchasing  power.  A  store  established  after 
such  studies  as  these,  and  carefully  provided  with  all  the 
modern  aids  to  selling,  if  it  has  good  salesmen  becomes 
a  scientific  selling  institution. 

The  store  exterior. — The  external  appearance  of  the 
store  is  important.  Cleanliness  is  the  most  essential  point. 
Clean  windows,  clean  sidewalks,  and  clean  looking  door- 
ways are  things  that  create  favorable  impressions  for  the 
store  in  the  minds  of  most  people;  they  never  create  un- 
favorable impressions.  To  this  point  we  have  already 
alluded.  Next  to  cleanliness  comes  color.  Fresh,  bright 
exteriors  are  powerful  in  attracting  favorable  attention, 
and  they  invite  or  attract  the  customer.  As  to  proper 
colors  for  stores,  these  should,  first  of  all,  be  in  harmony 
with  the  kind  of  goods  offered  for  sale  and  with  the  selling 
policy.  There  is,  perhaps,  no  conclusive  reason  why  second- 
hand goods  and  dingy  looking  stores  should  always  be 
associated,  nor  why  the  idea  of  cheap  goods  and  poor 
qualities  should  occur  to  us  when  we  look  at  a  faded,  run- 
down, rusty-looking  building.  But  it  is  a  fact  that  these 
associations  are  frequent.  The  gray  stone,  dignified  front 
of  the  high-grade  store,  and  the  gold  and  maroon  fronts 
of  the  syndicate  five-  and  ten-cent  stores,  both  express  their 
policies  effectively.  Both  are  excellent  for  their  respective 
purposes.  Solidity  and  substantiality  may  be  strongly  sug- 
gested by  the  structure  and  coloring  of  the  store  itself. 

The  window. — The  good  display  window  is  ordinarily  ob- 
long in  shape,  with  dimensions  corresponding  to  those  of  the 
"golden  section" — that  is,  with  the  length  approximately 
one  and  two-thirds  times  the  width.  The  height  of  the 
lower  edge  above  the  sidewalk  depends  somewhat  upon 
the  kind  of  goods  the  store  usually  shows.  Eighteen  or 
twenty  inches  represents  a  good  average  height.  The 
frame  of  the  window  should  be  simple,  neat,  easily  cleaned, 
and  in  keeping  with  the  front  of  the  store.  Many  splendid 

130 


WINDOW   DISPLAY    AND   AIDS    IN    SELLING 

plate-glass  windows  are  spoiled  by  poor  frames.  As  much 
care  should  be  used  in  choosing  the  proper  frame  for  a 
window  as  would  be  used  in  getting  a  good  picture  framed, 
for  the  window  display  is  to  be  a  three  dimension  picture 
or  tableau.  The  display  surface  behind  the  glass  should 
be  suited  to  the  business.  In  drygoods  stores  it  should  be 
about  six  feet  deep,  and  floored  with  parquetry  and  green 
carpet.  The  background  is  important.  Its  material  and 
colorings  serve  to  set  of?  the  goods  to  be  shown.  Mir- 
rors are  effective  for  coats,  suits,  and  other  women's  wear. 
Wood  panels  are  effective  for  dress  goods,  notions,  and 
other  drygoods.  Various  textiles  and  paper  coverings 
and  all  sorts  of  ornaments  have  been  devised  to  decorate 
windows.  Many  of  them  are  good.  Great  care  should  be 
used  in  their  selection,  however,  because  many  window 
effects  have  been  spoiled  by  bad  taste  in  dressing. 

Purpose  of  window  display. — A  commercial  window 
display  is  intended  to  catch  the  attention  of  passers-by  and 
to  hold  that  attention  until  favorable  interest  is  aroused. 
If  successful,  it  pulls  people  into  the  store  to  examine  and 
to  buy  the  things  seen  in  the  window.  It  appeals  to  the  eye, 
and  seeks  to  reach  favorable  and  habitual  channels  of  think- 
ing in  the  minds  of  passers-by,  by  the  use  of  reason,  sugges- 
tion, or  command.  With  some  goods  it  may  be  possible  to 
reason  by  means  of  a  window  display  as  forcibly  as  with 
words,  concerning  quality,  construction,  or  price.  In  other 
cases  the  display  suggests  the  satisfaction  that  the  onlooker 
would  have  were  he  the  owner  of  the  goods.  And  in 
others  it  dictates  in  a  friendly  way,  and  directs  the  onlooker 
"to  get  this  or  that  and  be  in  fashion."  Which  method 
shall  be  used  is  a  matter  for  study.  The  selection  of  method 
depends  upon  the  goods  displayed  and  the  classes  of  peo- 
ple to  whom  the  appeal  is  made.  Whatever  purpose  is 
selected,  the  trimmer  seeks  to  express  it  clearly,  and  with- 
out any  accompanying  features  which  may  cause  mental 


RETAIL    SELLING   AND    STORE    MANAGEMENT 

*  x 

objections,  dislike,  or  distaste.  He  makes  every  detail  aid 
him  in  his  purpose — the  goods  displayed,  the  window  frame, 
the  front  of  the  building,  the  lighting  of  the  window,  the 
display  surface,  the  fixtures,  and  the  background. 

Attracting  attention. — Window  dressing  is  clearly  an 
application  of  the  principles  of  art.  A  window  display  is 
to  be  judged  first  of  all  by  its  power  to  compel  attention. 
If  it  does  not  do  that,  it  is  valueless.  In  the  second  place, 
this  attention  must  be  relevant  to  something  connected 
with  the  business.  Anyone  can  get  attention  by  putting  into 
his  windows  something  unusual ;  as,  for  example,  a  cage  of 
monkeys,  a  humorous  cartoon,  or  a  collection  of  coins.  But 
these  do  not  sell  goods  unless  the  store  has  for  sale  the 
articles  shown.  The  window  display  draws  attention  in 
order  that  the  store  and  its  salesmen  may  sell  goods.  In 
the  third  place,  the  attention  attracted  must  be  favorable. 
It  will  do  no  good  to  the  store  to  have  people  stop  to  look 
at  a  piece  of  goods  that  is  badly  worn,  soiled,  or  faded. 
The  onlookers  will  receive  only  negative  impressions  from 
such  goods,  and  trade  will  go  to  other  stores. 

What  constitutes  good  display. — The  window  display 
must  be  orderly  and  simple;  it  must  have  meaning,  as  has 
been  shown,  and  it  must  be  appropriate.  It  should  be 
changed  often  enough  so  that  people  who  pass  it  regularly 
will  fall  into  the  habit  of  looking  for  the  new  in  it  every 
time  they  pass.  This  means  that  it  should  be  changed  not 
less  than  once  a  week,  and  twice  a  week  would  be  better. 
While  the  trimmer  must  apply  the  principles  of  art  in 
getting  his  form  and  color  effects,  he  must  seek  to  intro- 
duce new  elements  as  often  as  possible  in  form,  color,  ar- 
rangement, grouping,  and  use  of  open  space  between  groups. 
Principles  of  art  leave  a  very  wide  latitude  for  originality. 
Many  trimmers  use  ready-made  designs  and  plans  provided 
for  them  in  books  and  trade  papers.  Others  receive  com- 
plete outlines  from  manufacturers.  The  latter  are  gener- 

132 


WINDOW   DISPLAY   AND   AIDS    IN    SELLING 

ally  good,  and  the  number  of  companies  furnishing  them 
is  constantly  increasing.  Book  and  trade  paper  plans  are 
most  valuable  as  suggestions.  However,  to  take  what  has 
been  used,  even  with  success,  in  one  place  and  to  try  to 
apply  it  without  change  in  another  may  not  be  wise.  The 
skillful  window-trimmer  will  study  many  display  sugges- 
tions ;  he  will  visit  as  many  cities  and  other  stores  as  possi- 
ble, and  then  he  will  apply  the  ideas  he  has  picked  up,  in  the 
way  most  suited  to  his  own  business  and  trade. 

The  occupation  of  window-trimmer,  like  that  of  demon- 
strator, is  a  step  up  for  the  store  salesman.  Every  sales- 
man or  saleswoman  who  has  artistic  talent  and  an  eye  for 
good  form  and  color  arrangement,  should  undertake  the 
study  of  window-trimming  after  learning  all  that  is  possi- 
ble about  the  art  of  selling.  A  knowledge  of  personal  sales- 
manship is  fundamental  to  window-trimming,  as  well  as  to 
all  higher  store  positions. 

The  entrance. — The  arrangement  of  the  entrance  to  a 
store  may  be  either  a  help  or  a  hindrance  to  the  salesman. 
The  number  of  store  visitors  and  the  amount  of  sales  will 
be  increased  if  customers  find  it  easy  to  enter  a  store. 
The  doors  should  be  situated  with  reference  to  the  possi- 
bilities of  accommodating  the  public.  They  should  swing 
easily,  lightly,  and  without  friction  or  noise.  They  should 
be  amply  wide,  and  should  have  no  projections  likely  to 
catch  and  tear  the  clothing  of  those  who  enter  or  pass  out. 
A  store  that  can  only  be  entered  by  means  of  a  flight  of 
steps  is  at  a  disadvantage  as  compared  with  a  competing 
store  in  which  the  entrance  is  on  a  level  with  the  sidewalk. 
In  small  towns  where  each  store  has  an  established  clien- 
tele, this  disadvantage  is  not  serious;  but  it  is  likely  to 
become  serious  in  larger  places  where  buyers  "shop"  from 
store  to  store. 

Arrangement  of  departments. — It  is  important  that  the 
interior  of  the  store  be  so  arranged  as  to  be  of  the  greatest 

133 


RETAIL    SELLING   AND    STORE    MANAGEMENT 

possible  aid  in  selling.  In  the  first  place,  the  arrangement 
should  be  such  as  to  make  a  good  first  impression  on  the 
visitor.  It  should  be  easy  for  him  to  get  an  idea  of  the 
floor  plan — to  see  the  location  of  the  different  departments 
so  that  he  may  lose  no  time  in  getting  what  he  wants.  Low 
cases  behind  the  counters  aid  in  making  this  possible.  Well 
displayed  goods,  and  plenty  of  prominent  and  legible  show 
cards  also  help.  New  and  attractive  goods  should  be  placed 
near  at  hand.  Other  considerations  demand  that  the  goods 
near  the  entrance  should  be  such  as  require  little  personal 
salesmanship.  In  a  drygoods  store,  notions  and  novelties 
of  various  kinds  seem  to  serve  this  purpose  best.  They 
make  a  good  effect  on  the  eye,  and  many  visitors  who  drop 
in  from  the  street  for  some  reason,  not  necessarily  to  buy, 
are  often  attracted  by  some  little  novelty  which  they  may 
purchase  then  and  there. 

In  any  store  where  men's  goods  are  kept  these  goods 
should  be  placed  near  the  door.  Often,  if  placed  farther 
within,  a  man  will  hesitate  about  going  in  at  all.  High- 
priced  goods  requiring  careful  selling  should  be  located  in 
a  part  of  the  store  where  there  is  the  least  noise  and  passing 
of  people.  Among  such  articles  may  be  named  ladies' 
suits,  coats,  furs,  rugs,  wall  coverings,  pictures,  sewing 
machines,  musical  instruments,  complicated  tools,  machin- 
ery, etc. 

Interior  appearance. — Some  merchants  want  a  store  to 
look  like  a  parlor.  Others  want  it  to  look  like  a  business 
place  where  there  is  something  going  on  every  minute. 
The  former  are  appealing  to  exclusive  trade;  the  latter  to 
the  masses.  In  most  cities  there  is  really  so  little  exclu- 
sive trade  as  to  make  the  former  policy,  carried  out  by 
itself,  unprofitable.  Traders  from  the  exclusive  classes  are 
proverbially  fickle.  They  often  transfer  their  trade  as  the 
result  of  a  whim.  The  average  store  will  do  best  which 
attempts  to  serve  the  average  citizen  in  the  best  way.  The 

134 


WINDOW   DISPLAY   AND   AIDS    IN    SELLING 

exclusive  classes  should  be  encouraged  to  come,  to  be  sure, 
but  the  policy  of  the  store  should  be  democratic  and  not 
aristocratic  under  most  conditions.  Therefore  the  store 
which  never  tries  to  hide  the  fact  that  it  is  a  store,  but, 
instead,  makes  the  most  of  that  fact,  is  likely  to  do  the 
best. 

Show  the  goods. — It  may  be  stated  as  a  general  prin- 
ciple that  a  store  should  show  as  much  of  the  goods  it 
has  in  stock  as  possible — not  inclosed  in  cases  and  packages, 
but  displayed  so  that  people  can  see  them  easily.  There 
is  a  question  as  to  whether  certain  goods  should  be  kept 
under  glass  cases  or  on  open  counters  or  tables  where  they 
can  be  handled  by  customers.  Some  goods  to  be  sure,  can- 
not stand  much  handling  because  of  the  ease  with  which 
they  tarnish  or  soil  or  become  damaged  in  some  other  way. 
But,  on  the  whole,  most  merchants  agree  that  more  goods 
are  sold  where  customers  are  allowed  to  handle  and  look 
them  over,  than  where  everything  is  under  glass.  There 
are,  no  doubt,  exceptions  to  this ;  but  there  is  good  psychol- 
ogy favoring  the  open  counter.  No  customer  is  so  well 
sold  as  when  he  sells  himself. 

Show  cards. — Show  cards  are  one  of  the  most  valuable 
of  all  store  aids  to  selling.  Every  store  can  use  to  advan- 
tage a  great  number  of  show  cards  of  various  kinds — 
large  ones  to  designate  the  departments  and  the  goods  sold 
therein;  others  to  describe  goods  (silent  salesmen)  ;  others 
outlining  the  policy  of  the  store  towards  its  customers ;  and 
others  merely  giving  prices.  There  seems  to  be  no  good 
reason  now  why  a  one-price  house  should  not  have  price 
cards  on  all  displayed  goods.  There  is  every  reason  for 
this  practice.  Price  is  an  important  consideration  for  buy- 
ers in  at  least  seventy-five  per  cent,  of  all  purchases.  Most 
persons  do  not  care  to  be  led  too  deeply  into  an  interest  in 
a  thing  without  knowing  whether  the  price  lies  within  their 
means  or  not.  The  price  card  on  the  goods  answers  a 

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RETAIL    SELLING    AND    STORE    MANAGEMENT 

question  bound  to  arise  sooner  or  later,  and  answers  it  be- 
fore it  is  asked. 

Above  all,  show  cards  should  be  plain,  easy  to  read,  and 
easy  to  understand.  Black  letters  on  white  cardboard  is 
the  standard  and  most  legible  arrangement.  The  message 
on  a  show  card  needs  to  be  so  brief  that  it  can  be  read 
almost  at  a  glance.  Perhaps  no  field  of  store  advertising 
offers  such  opportunities  for  effective,  terse  expression  as 
the  planning  and  writing  of  show  cards.  The  ranks  of 
good  show-card  writers  are  by  no  means  overcrowded. 
The  good  salesman  who  possesses  some  artistic  talent  can 
increase  his  efficiency  greatly  by  studying  the  principles  of 
show-card  design  and  writing. 

Other  aids  to  selling. — It  is  not  possible  to  discuss  all 
the  activities  of  a  store  that  aid  in  selling.  Everything  the 
store  does  should  be  designed  to  increase  sales,  either  di- 
rectly or  indirectly.  The  store's  advertising  is  by  no  means 
confined  to  newspaper  publicity  or  to  window  displays. 
There  are  many  other  kinds  of  advertising,  and  all  of  them 
have  more  sales  as  their  one  purpose.  For  instance,  the  bar- 
gain department  is  primarily  an  advertisement.  It  is  in- 
tended to  get  people  into  the  store — to  make  them  buy  the 
bargains,  to  be  sure,  but  also  to  make  them  buy  other 
goods  at  regular  prices.  To  be  most  effective  the  bargain 
department  must  really  offer  bargains,  and  there  should 
be  such  frequent  additions  and  changes  in  the  offerings  as 
to  make  the  department  interesting  even  to  the  customer 
who  calls  most  frequently.  The  fundamental  seHing  argu- 
ment of  the  bargain  department  is  price,  and  in  no  part  of 
the  store  is  the  price  card  so  absolutely  necessary.  Open 
shelves  and  counters  where  customers  may  see  and  handle 
the  goods  are  the  rule. 

The  location  of  the  bargain  department  is  important  in 
a  store  plan,  and  the  arguments  for  one  or  another  loca- 
tion should  be  carefully  weighed.  A  bargain  department 

136 


WINDOW   DISPLAY   AND   AIDS   IN    SELLING 

is  better  patronized  than  any  other  part  of  the  store,  so  far 
as  numbers  of  patrons  are  concerned.  If  it  is  placed  near 
the  main  store  entrance,  the  sight  of  the  moving  crowds 
near  the  bargain  tables  will  draw  the  attention  of  many 
who  pass  on  the  outside,  and  who  will  be  attracted  by 
curiosity  to  come  in.  On  the  other  hand,  the  net  profits 
per  sale  in  the  bargain  department  are  likely  to  be  small; 
hence  the  merchant  usually  thinks  of  that  department  chiefly 
as  an  advertisement — to  draw  patrons  into  the  store.  If 
the  people  attracted  by  the  bargains  are  to  buy  goods  in 
other  departments  as  well,  the  bargain  department  should  be 
so  situated  that  a  customer  must  pass  through  some  of  the 
other  departments  before  and  after  visiting  it.  This  gives 
the  regular  store  display  a  chance  to  impress  the  customer 
and  to  suggest  the  need  for  other  goods  than  those  wanted 
on  the  bargain  counters.  For  this  reason,  the  bargain  de- 
partment is  usually  situated  in  the  back  of  the  store,  or  on 
some  other  than  the  main  floor. 

Two  other  aids  to  salesmen  are  the  entertainment  fea- 
tures provided  by  the  store  and  demonstrations  of  goods 
suitable  for  demonstration  purposes.  Entertainment  fea- 
tures— rest  rooms,  music,  etc. — are  excellent  in  so  far  as 
they  draw  people  into  the  store  and  do  not  take  the  atten- 
tion of  store  visitors  from  the  goods  on  sale.  Anything 
that  contributes  to  the  comfort  of  patrons  is  good.  But  if 
people  are  drawn  into  a  store  in  order  to  see  or  hear  or  do 
something  that  has  no  real  connection  with  the  goods  offered 
for  sale,  there  may  be  differences  of  opinion  as  to  the  value 
of  the  attraction. 

The  last  salesmen's  help  to  be  mentioned  is  the  store 
demonstration.  A  demonstration  is  really  a  special  form  of 
applied  salesmanship.  It  seeks  to  get  the  undivided  atten- 
tion and  interest  of  prospective  customers,  to  suggest  uses, 
to  excite  the  onlookers*  imaginations,  and  to  prove  the 
quality  of  the  goods.  Every  display  is,  in  a  sense,  a  demon- 

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RETAIL    SELLING   AND    STORE    MANAGEMENT 

stration,  but  a  demonstration  is  not  at  its  best  until  the 
attractive  power  of  the  goods  themselves  is  supplemented 
by  the  salesman's  power  of  description.  Demonstrations 
of  store  goods  are  splendid  aids  in  selling.  Every  store 
should  look  carefully  into  the  advantages  of  frequent  dem- 
onstrations. Demonstrations  are  used  widely,  but  not  nearly 
so  widely  as  they  should  be.  In  nearly  every  store  there 
is  an  unused  opportunity  to  show  clothing  on  living  models, 
to  demonstrate  food  stuffs,  or  to  present  some  other  kinds 
of  goods  in  such  a  way  as  to  make  the  most  effective  appeal 
to  possible  purchasers. 


CHAPTER   XII 

RELATION  OF  THE  SALESMAN  TO  HIS  EMPLOYER  AND 
TO  THE  PUBLIC 

The  salesman  a  representative  of  his  house. — When  a 
merchant  hires  a  salesman,  he  does  so,  theoretically  at  least, 
because  he  cannot  be  in  all  places  himself.  He  must  have 
help.  The  salesman  takes  the  place  of  the  manager  of  the 
business  and  acts  for  him  in  the  capacity  of  a  representa- 
tive. A  salesman's  salary  is  his  remuneration  for  thus 
representing  the  owner.  In  a  very  true  sense  he  is  success- 
ful only  in  so  far  as  he  successfully  represents  his  em- 
ployer. 

The  salesman's  service  to  his  employer.— When  a  sales- 
man accepts  employment  in  a  store,  he  contracts  to  give  the 
following  things  to  his  employer: 

1.  Certain  hours  of  time  during  which  he  is  supposed 
to  be  on  duty. 

2.  Certain  services  to  be  performed  during  that  time  in 
the  best  manner  possible. 

3.  A  certain  mental  attitude  towards  the  business,  con- 
sisting of  a  desire  to  see  the  business  succeed  and  a  will- 
ingness to  help  it  succeed. 

4.  A  certain   attitude  towards  his  work  that  will  lead 
him  to  use  such  expressions  as  "our  store,"  "our  goods," 
and  the  pronoun  "we"  instead  of  "they"  when  referring  to 
the  place  where  he  is  employed.     It  does  not  matter  what 
salary  a  man  is  paid;  the  contract  is  essentially  the  same 

139 


RETAIL    SELLING   AND    STORE    MANAGEMENT 

in  every  case,  and  must  have  been  accepted  by  the  sales- 
man before  he  could  have  obtained  his  position.  His  con- 
tinuance in  that  position  must  be  based  upon  the  proof  or  at 
least  the  assumption  that  the  salesman  is  fulfilling  his  part 
of  the  contract. 

A  recent  business  magazine  contained  this  statement, 
which  expresses  the  idea  exactly:  "If  you  are  going  to 
work  for  a  man  work  for  him.  Speak  well  of  him,  stand 
by  him,  and  stand  by  the  institution  he  represents.  An 
ounce  of  loyalty  is  worth  a  pound  of  cleverness.  If  you 
want  to  condemn,  resign  first  and  then  condemn  to  your 
heart's  content."  Also,  "Don't  kick  about  the  boss  behind 
his  back.  If  you  can't  say  anything  good,  keep  still." 

Do  your  best  for  your  own  sake. — Besides  the  reason 
already  given  for  a  salesman's  always  doing  his  best — 
which  is  only  his  plain,  common,  everyday  duty — there  is 
another  reason.  This  second  reason  is  that  if  a  man  does 
his  best  continually,  he  is  really  keeping  in  training  for 
better  things ;  while  the  man  who  habitually  does  less  than 
he  can  do,  shortly  finds  that  his  best  has  dropped  down 
instead  of  risen.  For  his  own  sake,  then,  every  salesman 
ought  to  do  his  best  at  his  work. 

Co-operation. — Personal  service  in  a  retail  store  means, 
among  other  things,  getting  along  well  with  other  employes 
— assisting  them  in  the  interests  of  the  house.  In  a  large 
sense,  civilization  is  measured  by  how  well  people  can  get 
along  with  each  other  and  can  work  together.  Ability  to 
co-operate  is  a  sign  of  culture.  The  individual  who  can  only 
work  by  himself  and  for  himself  is  something  of  a  savage. 
He  is  crudely  developed. 

Store  rules. — The  personal  service  that  a  salesman  agrees 
to  give  includes  cheerful  compliance  with  the  rules,  policies, 
and  traditions  of  the  store.  As  far  as  possible,  he  should 
be  given  the  reasons  for  all  rules  and  customs;  this  is  not 
always  done,  and  when  it  is  not,  the  new  salesman  is  likely 

140 


RELATIONS  OF  THE  SALESMAN 

to  look  upon  some  of  the  regulations  as  unreasonable. 
There  are  some  practices  in  some  retail  stores  that  need 
to  be  abandoned,  but  for  the  most  part,  the  rules  are  a 
development  of  long  experience,  and  express  tersely  what 
has  been  found  the  safest  policy  to  follow.  The  salesman 
should  aim  to  acquaint  himself  with  all  of  the  rules  as 
soon  as  possible,  and,  since  he  is  the  employe  and  not  the 
employer,  he  should  comply  with  them  completely.  Sug- 
gestions for  changes,  when  made  in  the  right  way,  are 
usually  welcome. 

The  things  that  are  put  down  in  store  rule-books  vary 
considerably,  but  the  principles  back  of  the  rule-books  are 
generally  the  same.  There  are  four  things  that  are  gener- 
ally demanded  of  retail  salespeople:  punctuality,  care  of 
stock,  industry,  and  politeness. 

The  store  wants  its  salespeople  to  be  regular  in  attend- 
ance and  to  be  punctual  in  arriving  and  leaving  the  store 
according  to  the  store  schedule;  to  perform  the  regular 
duties  of  the  store  in  quick  time;  to  begin  the  day's  work 
without  unnecessary  delay;  to  report  calls  for  merchandise 
as  soon  as  possible  to  the  buyer;  to  make  known  errors 
in  transactions  at  once ;  to  replenish  stock  at  the  right  time ; 
to  give  any  information  the  store  manager  may  need  as  soon 
as  such  information  has  been  gained.  In  summary,  the 
salesman  needs  to  be  always  ready. 

Proper  care  of  stock  means  that  it  must  be  kept  in  order, 
free  from  dust,  and  looking  its  very  best.  Proper  care  of 
stock  certainly  means  also  that  the  department  should  be 
kept  fresh  and  clean,  that  the  displays  should  be  attractive, 
and  that  everything  should  be  ready  for  doing  business 
with  little  likelihood  that  there  will  be  waste  of  either  time 
or  energy  when  the  actual  selling  begins. 

Store  rules  about  industry  mean  that  the  salesman  owes 
his  best  service  to  the  customer  and  that  he  must  do  his 
best  to  make  sales.  There  need  be  but  few  idle  moments 

141 


RETAIL    SELLING    AND    STORE    MANAGEMENT 

in  any  store,  for,  when  there  is  no  selling  to  be  done,  the 
salesman  can  spend  his  time  in  improving  his  department. 

In  requiring  politeness,  the  store  expects  that  the  sales- 
man's manners  should  always  be  the  best — that  he  should 
be  a  gentleman  at  all  times  and  under  all  conditions. 

Some  years  ago  a  large  industrial  corporation  in  Ohio 
published  the  following  rules  for  the  benefit  of  its  employes. 
The  ideas  are  valuable  and  are  interestingly  stated.  They 
are  full  of  valuable  suggestions  for  retail  salespeople. 

OUR  TEN  COMMANDMENTS 

Rule  I.  Don't  lie — it  wastes  our  time  and  yours.  We're 
sure  to  catch  you  in  the  end,  and  that's  the 
wrong  end. 

Rule  II.  Watch  your  work  and  not  the  clock.  A  long 
day's  work  makes  a  long  day  short,  and  a  short 
day's  work  makes  our  face  long. 

Rule  III.  Give  us  more  than  we  expect,  and  we'll  pay  you 
more  than  you  expect.  We  can  afford  to  in- 
crease your  pay  if  you  increase  our  profits. 

Rule  IV.  You  owe  so  much  to  yourself  that  you  can't 
afford  to  owe  anybody  else.  Keep  out  of  debt 
or  keep  out  of  the  shops. 

Rule  V.  Dishonesty  is  never  an  accident.  Good  men, 
like  good  women,  can't  see  temptation  when 
meet  it. 

Rule  VI.  Don't  do  anything  here  which  hurts  your  self- 
respect.  The  employe  who  is  willing  to  steal  for 
us  is  capable  of  stealing  from  us. 

Rule  VII.  Mind  your  own  business,  and  in  time  you'll 
have  a  business  of  your  own  to  mind. 

Rule  VIII.  It's  none  of  our  business  what  you  do  at 
night.  BUT  if  dissipation  affects  what  you  do 
the  next  day,  and  you  do  half  as  much  as  we 
demand,  you'll  last  half  as  long  as  you  hoped. 

142 


RELATIONS   OF   THE    SALESMAN 

Rule  IX.      Don't  tell  us  what  we'd  like  to  hear,  but  what 

we  ought  to  hear. 
Rule  X.        Don't  kick  if  we  kick — if  you're  worth  while 

correcting,   you're   worth   while   keeping.     We 

don't  waste  time  cutting  specks  out  of  rotten 

apples. 

Not  hard  to  get  into  high  class  of  salesmen. — The 

salesman  who  really  wishes  to  succeed  at  his  profession 
can  do  so  perhaps  more  easily  than  in  any  other  calling. 
There  are  great  numbers  of  poor  salespeople  and  great 
numbers  of  fairly  good  salespeople,  but  very  few  really 
good  or  excellent  ones.  The  poor  ones  are  for  the  most 
part  those  who  know  nothing  about  their  goods  that  most 
customers  do  not  themselves  know,  and  they  care  nothing 
for  the  business.  The  fairly  good  ones  are  interested  in 
the  business  in  a  way,  and  through  long  experience  may 
have  picked  up  considerable  information  about  their  goods, 
but  this  information  is  not  in  any  organized  form.  They 
may  be  good  people,  always  on  time,  loyal,  and  ready  to 
help ;  but  they  lack  the  ambition  to  study  their  work,  which 
is  the  mark  of  an  expert  salesman.  Two  years  of  close, 
concentrated  study  of  a  line  and  its  selling  problems  are 
enough  in  most  cases  to  give  any  bright  young  person  a 
start  in  the  science  of  selling  that  will  send  him  rapidly  to 
the  front.  If  the  opportunity  does  not  come  in  his  own 
store,  it  will  come  somewhere  else. 

How  to  improve  in  salesmanship. — To  advance  in  sales- 
manship the  man  with  ambition  to  succeed  should  do  the 
following  things :  He  should  study  the  books  dealing  with 
the  goods  he  handles,  read  the  trade  papers,  and  ransack  the 
public  libraries  for  help.  He  should  write  to  the  manu- 
facturers of  his  goods  for  information  about  them,  ask 
questions  of  his  superiors,  of  buyers,  of  traveling  salesmen, 
and  of  anybody  who  might  have  some  new  information 

143 


RETAIL    SELLING   AND    STORE    MANAGEMENT 

to  impart.  Above  all  he  should  keep  his  eyes  and  mind 
open.  Whenever  the  opportunity  offers,  he  should  visit 
other  stores  and  let  other  clerks  experiment  on  him,  and  he 
should  analyze  the  feelings  aroused  in  him  by  different 
kinds  of  selling  methods.  If  possible,  he  should  visit  the 
places  where  the  goods  he  handles  are  produced. 

Poorly  paid  salesmen  may  cost  employer  more  than 
good  salesmen. — Salaries  are  generally  paid  to  salesmen  on 
some  basis  that  corresponds  with  their  earnings  for  the 
store.  There  are  in  retail  stores  a  good  many  poorly  paid 
people;  but  this  should  be  said  for  that  condition — there 
are  many  five  dollar  a  week  salespeople  who  actually  cost 
the  firm  more  than  those  who  are  receiving  ten  or  fifteen 
dollars  per  week.  It  is  selling  ability  that  counts,  and 
selling  ability  depends  upon  the  salesman's  knowledge  of 
his  business,  his  health,  his  ambition,  and  his  direct  and 
wasteless  use  of  his  time  and  labor. 

Relations  to  community. — Besides  his  duties  to  his  house 
and  to  himself,  the  salesman  has  a  definite  place  and  defi- 
nite duty  towards  his  community.  Social  relations  are  help- 
ful in  gaining  selling  success.  A  good  salesman  always 
has  many  acquaintances,  but  like  all  other  classes  of  people, 
he  should  choose  his  friends  with  care,  for  we  are  all  judged 
by  the  friends  we  make  and  keep.  The  salesman  should 
be  of  the  social  type,  the  kind  that  likes  good  company, 
but  he  should  never  let  social  duties  encroach  on  his  busi- 
ness so  as  to  cut  down  his  efficiency.  Social  ambitions 
are  dangerous  to  selling  success.  An  evening  now  and  then 
at  a  social  gathering,  with  plenty  of  nights  intervening  for 
quiet  rest,  is  the  best  rule.  If  a  salesman  loses  the  sleep 
he  needs,  he  will  soon  be  only  a  poor  order-taker.  It 
takes  live,  wide-awake  human  energy  to  make  sales. 

Salesmen  and  politics. — A  salesman  ought  to  take  a  citi- 
zen's interest  in  all  political  matters  and  to  vote  for  that 
which  seems  right  and  for  the  good  of  all  at  every  oppor- 

144 


RELATIONS  OF  THE  SALESMAN 

tunity,  but  he  will  spoil  his  usefulness  as  a  salesman  if  he 
turns  politician,  or  if  he  begins  to  talk  politics.  This  al- 
ways makes  enemies  and  creates  dislike  among  some  classes 
of  people.  A  salesman  is  in  a  sense  a  public  officer  who 
should  aim  to  serve  all  people  alike.  To  take  sides  too 
strenuously  with  any  party  will  hurt  his  efficiency. 

Be  true  salesmen. — The  salesman  should  never  try  to 
appear  what  he  is  not.  To  be  a  good,  honest,  well-liked 
salesman  is  enough  honor  for  anyone,  and  such  a  person 
has  reason  to  feel  proud  of  his  condition.  Be  proud  of 
your  calling.  Be  jealous  of  the  honor  and  good  will  that 
good  salesmen  are  everywhere  building  up. 

Keep  yourself  strong. — The  salesman  should  be  a  good 
business  and  moral  example  for  his  community.  He  should 
pay  his  debts  promptly,  live  within  his  means,  and  live  a 
clean  moral  life.  No  salesman  can  afford  to  take  chances 
on  injuring  his  efficiency  by  using  any  form  of  alcoholic 
beverages.  It  simply  does  not  pay.  Tobacco  likewise 
hurts  the  efficiency  of  thousands  of  men.  Perhaps  you  are 
only  a  mediocre  salesman  because  of  reduced  energy  and 
keenness  of  mind  due  to  smoking.  We  know  smoking  has 
this  effect  on  some  people.  As  a  business  proposition,  does 
it  pay  to  take  any  chances  with  any  habit  that  is  question- 
able in  its  effects? 

Fight  blue  days. — Fight  down  blue  days;  struggle 
against  the  feeling  that  sometimes  tempts  one  to  say,  "I 
can't"  "It  can't  be  done,"  "I'll  wait  till  to-morrow,"  and 
a  number  of  other  threadbare,  backboneless  expressions. 
Have  faith.  Believe  in  yourself,  your  employer,  and  your 
goods.  Go  to  work  every  day  with  conviction  that  your 
work  is  good  and  your  success  certain.  A  noted  sales  man- 
ager once  prepared  a  catechism,  which  he  required  each 
salesman  to  memorize  and  to  repeat  every  morning  before 
beginning  work.  It  is  said  to  have  been  wonderfully  effec- 
tive. Suppose  we  change  the  questions  so  that  they  apply 

145 


RETAIL    SELLING   AND    STORE    MANAGEMENT 

strictly  to  retail  selling.     Learn  the  catechism.     Repeat  it 
every  morning.    It  cannot  fail  to  increase  your  efficiency. 

CATECHISM  FOR  SALESMEN 

Am  I  working  for  a  good  house?    YES. 

Has  my  house  the  reputation  of  being  one  of  the  best  in 
its  line?  YES. 

Is  it  the  policy  of  the  house  to  treat  every  customer  cour- 
teously, and  to  deserve  her  future  trade?  YES. 

Am  I  going  to  put  that  policy  into  effect?    YES. 

Do  I  owe  my  best  services  to  my  employer  ?     YES. 

Am  I  going  to  do  my  best  to-day  ?    YES. 

Is   salesmanship   a   big,    worth-while   work?     YES. 

Am  I  going  to  succeed?    YOU  BET  I  AM. 

Optimism. — Finally,  be  optimistic.  The  world  is  not 
such  a  bad  place  after  all.  In  fact,  it  is  just  about  what 
we  make  it,  so  far  as  we  are  concerned.  Be  bright.  Let 
the  sun  shine  in.  Find  the  silver  side  when  clouds  gather. 
A  great  business  manager  of  a  chain  of  retail  stores  sent 
the  following  letter  to  every  salesman  in  his  employ.  Read 
it  slowly  and  carefully. 

Do  You  BELONG  TO  THE  LODGE  IN  WHICH  A  SMILING  FACE 
Is  THE  ONLY  REQUIREMENT? 

There  is  no  money  necessary. 

There  is  no  initiation  ceremony. 

There  is  no  password — regalia — dues  or  lodge  room. 

This  is  all  that  is  expected  of  a  member: 

When  he  meets  anyone  who  is  grouchy,  he  smiles  and 
asks,  "Do  you  belong?" 

If  the  grouchy  one  has  heard  of  the  order,  he  is  reminded 
that  a  smile  must  chase  away  the  grouch. 

Greet  everyone  smilingly — it's  a  great  tonic — it  pays  a 
big  dividend  to  both  the  giver  and  the  receiver. 

146 


RELATIONS  OF  THE  SALESMAN 

The  wrong  a  man  does  in  letting  an  unhappy  expression 
stay  on  his  face  is  not  confined  to  himself  but  is  a  blighting 
influence  on  the  health  and  spirits  of  everyone  he  meets. 

DO  YOU  BELONG?  SMILE!  The  smile  lets  a  light 
in  on  the  darkened  and  depressed  brain. 

DO  YOU  BELONG?— A  SMILE  PROVES  THAT 
YOU  DO;  a  frown  is  an  admission  that  you  don't. 

Don't  ask,  "Belong  to  what  ?" — the  organization  is  name- 
less. 

Try  to  merit  the  privilege  of  membership  by  keeping 
unhappiness  out  of  your  face. 


CHAPTER   XIII 
EFFICIENCY  AND  STORE  ORGANIZATION 

New  lines  of  business  opportunity. — Much  is  now  being 
said  about  efficiency  in  all  lines  of  business  management. 
Until  recently  business  men  in  this  country  have  given 
more  thought  to  expansion  than  to  intensive  study  of 
methods  of  improving  their  old  holdings.  With  but  few 
exceptions,  the  large  fortunes  of  the  United  States  have  been 
accumulated  by  wise  and  fortunate  extensions  of  capital 
into  new  fields  and  unworked  fields,  rather  than  by  scientific 
management  of  the  original  enterprises.  This  has,  natu- 
rally, been  the  case  in  a  land  where  unworked  natural  re- 
sources existed  in  abundance.  Now  that  free  land  has 
practically  disappeared,  the  supplies  of  iron  and  coal  are 
nearly  all  developed,  and  water  power  and  other  resources 
are  absorbed  in  ownership,  the  masses  of  business  men 
have  been  forced  to  turn  from  the  former  customary  Amer- 
ican methods  of  investment.  Young  men  are  no  longer  ad- 
vised to  "Go  west  and  grow  up  with  the  country."  The 
West  is  already  fairly  well  grown-up.  The  man  with  ambi- 
tion and  capital  no  longer  considers  building  a  railroad 
through  a  wilderness  which  his  vision  foresees  will  some- 
time bloom  with  the  products  of  civilization's  labor.  There 
are  no  longer  such  wildernesses.  It  may  almost  be  stated 
now  that  so  far  as  trunk  lines  are  concerned,  the  railroad 
systems  of  our  country  are  nearly  completed.  It  becomes 
less  probable,  with  every  passing  year,  that  new  bonanza 

148 


EFFICIENCY   AND   STORE   ORGANIZATION 

mines  of  minerals  are  still  to  be  discovered.  The  pros- 
pector has  been  replaced  by  the  geologist,  who  figures  out 
in  advance,  from  certain  general  information  he  possesses 
regarding  the  geological  formations  of  an  area,  the  pos- 
sibility of  rinding  valuable  minerals. 

Intensive  management. — So  captains  of  industry  are  no 
longer  the  men  who  are  hazarding  their  fortunes  and  their 
lives  on  the  frontiers  of  civilization.  The  time  has  come 
for  advance  in  another  direction.  The  business  man  of 
vision  and  ambition,  to-day  turns  his  attention  to  the  thing 
called  efficiency.  He  seeks  to  cheapen  the  cost  of  production. 
As  a  result,  invention,  in  the  past  said  to  be  the  offspring 
of  necessity,  has  now  come  to  be  an  occupation  based  on 
science.  The  capacity  of  machines  is  being  increased  many- 
fold,  and  the  powers  of  labor  realized  more  fully.  Scien- 
tific management  makes  the  most  of  tools,  material,  and  of 
men.  Rightly  employed,  it  promises  greater  benefit  to  man- 
kind than  any  other  industrial  step  that  has  ever  been  taken. 

Recent  interest  in  scientific  management. — There  has 
recently  been  more  attention  given  to  this  subject  than 
ever  before.  This  has  been  due  quite  largely  to  the  pub- 
licity that  was  given  to  certain  hearings  before  the  Inter- 
state Commerce  Commission  during  the  season  of  1910-11 
in  which  the  railroads  of  the  country  asked  that  they  might 
be  allowed  to  increase  their  freight  rates.  The  railroads 
attempted  the  explanation  that  such  an  increase  was  neces- 
sary in  order  to  carry  on  transportation  and  make  such  im- 
provements as  were  necessary  in  track  and  rolling  stock. 
Their  opponents,  the  shippers  of  freight,  through  their  attor- 
ney, Louis  Brandeis  of  Boston,  introduced  the  unique  argu- 
ment, backed  up  by  evidence  of  undisputed  value,  that  if 
the  railroads  would  but  apply  such  principles  of  scientific 
management  as  had  already  proved  effective  in  other  sim- 
ilar lines,  an  increase  in  rates  would  be  wholly  unneces- 
sary in  order  to  get  the  increased  financial  returns  desired. 

149 


RETAIL    SELLING   AND    STORE    MANAGEMENT 

He  estimated  that  a  saving  of  a  million  dollars  per  day  could 
be  effected  readily.  The  Interstate  Commerce  Commission 
decided  in  favor  of  Mr.  Brandeis.  Since  then,  business 
magazines  have  teemed  with  articles  upon  efficiency  and 
scientific  management.  Business  men  in  all  parts  of  the 
country  have  studied  their  own  industries  in  the  light  of 
this  new  science.  Much  experimenting  has  been  done.  No 
doubt  many  rash,  ill-timed  beginnings  have  been  made  only 
to  be  followed  by  mistrust  and  ridicule ;  but  scientific  man- 
agement, in  its  right  meaning,  has  come  to  stay. 

Scientific  management  in  retailing. — The  principles  of 
this  science  are  few  and  simple,  but  the  methods  required 
to  obtain  exact  applications  of  the  principles  to  a  given 
business  are  often  laborious,  requiring  much  time,  patience, 
and  care.  What  these  principles  are  -  need  not  here  be 
considered,  except  as  they  may  be  applied  to  a  retail  busi- 
ness. The  main  features  of  any  science  are,  first,  the 
gathering  together  of  the  common  experiences  of  those  en- 
gaged in  the  same  work;  second,  the  analysis  of  these  ex- 
periences to  determine  the  reasons  for  the  success  of  some 
methods  of  procedure  and  for  the  failure  of  others;  and, 
third,  a  restatement  of  those  reasons  in  such  terms  as  to 
make  them  applicable  elsewhere.  These  have  been  the 
aims  of  these  chapters  on  retailing.  It  has  been  their  pur- 
pose to  bring  home  to  the  student  business  man,  the  lines 
along  which  efficient  retailing  is  developing,  its  relations  to 
other  business  and  to  society,  and  its  relation  to  the  science 
of  psychology,  economics,  and  sociology.  It  now  remains  to 
point  out  more  definitely  some  of  the  means  whereby  the 
efficiency  of  a  retail  store  may  be  increased. 

Efficiency  engineers. — In  the  last  few  years  it  has  become 
common  for  industrial  and  commercial  establishments,  for 
the  purpose  of  increasing  their  efficiency,  to  call  to  their 
service  for  a  time  experts  in  their  respective  lines — men 
who  can  make  careful  studies  and  draw  accurate  conclu- 


EFFICIENCY   AND   STORE   ORGANIZATION 

sions  therefrom.  Not  only  is  such  help  called  for  by  con- 
cerns when  it  becomes  evident  that  they  are  in  a  bad  way 
financially,  but  even  more  frequently  it  is  called  for  by 
strong,  virile,  active  businesses  that  are  known  to  be  doing 
well.  These  successful  organizations  recognize  the  pos- 
sibility of  doing  still  better.  Some  years  ago  the  mail-order 
house  of  Sears,  Roebuck  and  Company  paid  $30,003  for 
an  expert  investigation  of  its  business.  The  results  were, 
no  doubt,  satisfactory;  for  the  following  increase  in  busi- 
ness has  been  phenomenal.  There  are  hundreds  of  ex- 
perts in  this  country  whose  entire  time  is  given  to  investiga- 
tion of  this  kind — to  giving  expert  advice  and  suggestions. 
The  name  of  "efficiency  engineering"  has  been  applied  to 
their  calling. 

Scientific  study  of  a  concern. — The  first  step  in  an  in- 
vestigation such  as  a  professional  efficiency  engineer  would 
conduct  is  to  analyze  the  business,  determine  what  it  has 
to  do,  and  the  means  it  has  to  do  it  with.  The  next  step 
is  to  study  each  activity  that  is  carried  on,  to  see  that  it 
proceeds  in  a  straight  line  towards  its  aim,  and  to  be  sure 
there  shall  be  no  wastes  in  motions  or  in  materials.  Such 
an  investigation  reveals  the  kind  of  organization  of  forces 
and  materials  that  is  necessary  to  the  most  economical  per- 
formance of  the  work.  Let  us  see  what  such  an  analysis 
will  show  for  a  retail  store. 

Analysis  of  a  retail  store. — The  work  of  a  retail  store 
is  the  buying  and  selling  of  goods  so  as  to  yield  a  profit 
for  the  house.  To  carry  this  on  effectively,  there  must, 
then,  be  the  goods  that  are  bought  and  sold ;  there  must  be 
a  building  well  adapted  to  storing  and  to  selling  goods ;  there 
must  be  a  force  of  people  working  systematically  to  show, 
sell,  and  deliver  the  goods ;  there  must  be  means  of  reaching 
the  public  to  tell  them  about  the  goods  the  store  has  for 
sale ;  and  there  must  be  records  to  show  whether  the  busi- 
ness is  advancing  or  going  backwards,  and  to  relieve  the 


RETAIL    SELLING   AND    STORE    MANAGEMENT 

memory  of  the  manager  of  a  mass  of  important  and  valu- 
able information  which  it  would  be  impossible  for  him  to 
keep  in  mind. 

These  five  divisions — goods,  store,  employes,  advertising, 
and  bookkeeping — are  usually  cared  for  by  four  depart- 
ments. The  selection,  buying,  and  selling  of  the  merchan- 
dise is  put  under  a  department  headed  by  a  so-called  Mer- 
chandise Manager.  The  building,  the  systems  of  selling, 
and  the  hiring,  dismissing,  instructing,  and  disciplining  of 
employes  is  made  the  work  of  an  official  called  the  Store 
Superintendent.  The  advertising  is  carried  out  under  the 
direction  of  the  Advertising  Manager.  And  the  bookkeeping 
is  done  in  the  Records  Department,  the  chief  of  which  is 
variously  called  auditor,  head  bookkeeper,  chief  accountant, 
records  manager,  etc. 

Retail  store  organization. — The  student  should  study 
Plate  III  with  care.  Note  the  four  department  heads 
already  referred  to,  and  the  relation  of  each  to  the  general 
manager  or  the  owner  of  the  store.  This  plate  is  intended 
to  represent  a  good  retail  store  organization  employing  from 
twenty-five  to  two  hundred  people.  With  certain  minor 
changes  it  is  applicable  to  even  smaller  stores.  It  should 
be  understood  at  once  that  each  oblong  does  not  necessarily 
represent  a  person.  Rather,  it  represents  a  part  of  the 
work  of  the  store.  One  man  may  hold  several  positions; 
for  example,  the  general  manager  is  commonly  the  mer- 
chandise manager  of  his  store,  and  may  also  be  the  store 
superintendent.  In  very  small  stores,  with  only  a  few  clerks, 
the  general  manager  is  usually  all  four  of  the  department 
heads,  and  he  is  a  buyer  and  salesman  besides.  On  the 
other  hand,  the  plate  does  not  show  the  number  of  persons 
that  some  of  the  oblongs  represent.  There  may  be  several 
buyers,  and  dozens  of  salesmen,  deliverymen,  floor  man- 
agers, cashiers,  etc.  All  that  the  plate  represents  is  an  out- 
line of  the  work  to  be  done  in  a  retail  store,  with  lines 

152 


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RETAIL    SELLING   AND    STORE    MANAGEMENT 

showing  what  departments  are  responsible  for  the  work. 
It  also  shows  the  usual  directions  of  promotion.  For  ex- 
ample, the  efficient  floor  manager  may  hope  to  become  a 
store  superintendent  some  day;  the  window  trimmer,  an 
advertising  man ;  the  salesman,  a  buyer ;  the  buyer,  a  mer- 
chandise manager;  and  the  collector  may  become  a  credit 
man.  Not  that  these  are  the  only  possible  means  of  rising, 
but  they  are  the  most  natural  or  logical. 

Duties  of  each  department.— Using  Plate  III  as  an  out- 
line, let  us  define  the  work  of  each  of  the  departments  so 
as  to  show  its  relation  to  the  effective  management  of  the 
whole  business.  We  shall  speak  as  if  the  work  of  each  de- 
partment were  supervised  by  a  separate  individual,  though 
the  student  must  keep  in  mind  that  this  definite  separation 
does  not  mean  that  two  or  more  of  the  departments  cannot  in 
some  cases  be  directed  effectively  by  one  man. 

The  general  manager. — The  general  manager  is  the 
owner  or  the  representative  of  the  owner  of  the  business. 
He  is  the  one  who  is  directly  responsible  for  the  success- 
ful management  of  the  business  and  the  accumulation  of 
surplus  and  profits.  The  owners,  whoever  they  may  be, 
have  invested  their  money  in  the  business  in  order  to  get 
returns  or  dividends.  This  desire  on  their  part  is  entirely 
legitimate.  They  offer  to  do  a  service  for  the  public  for 
which  a  return  is  asked.  But  that  service  must  be  efficiently 
performed  or  there  will  be  no  dividends;  hence  the  great 
importance  of  selecting  a  highly  capable  man  for  general 
manager.  He  needs  to  be  a  man  of  executive  ability,  an 
organizer,  a  leader,  and  a  teacher  of  men.  He  needs  to  be  a 
good  judge  of  human  nature,  so  that  he  can  select  for  his  de- 
partment heads  the  right  kind  of  people. 

In  the  highly  successful  business,  the  general  manager  is 
well  known  to  all  of  his  force.  He  is  approachable.  He 
is  always  ready  to  give  ear  to  any  suggestion  or  complaint 
that  cannot  be  disposed  of  satisfactorily  by  his  subordinates. 

154 


EFFICIENCY   AND    STORE    ORGANIZATION 

Upon  him  devolves  the  important  duty  of  determining  the 
store  policies,  and  his  enthusiasm  is  usually  the  mainspring 
for  the  whole  store.  He  has  broad  oversight  over  all  the 
store.  He  needs  to  be  familiar  with  its  every  detail,  but  he 
gives  special  attention  to  the  financial  and  trade  conditions 
upon  which  the  store  is  to  base  its  buying  and  selling  pol- 
icies. 

That  general  manager  is  considered  good  who  selects  the 
best  men  for  his  department  heads,  who  gets  loyal,  en- 
thusiastic service  from  the  entire  force,  who  guides  the 
buying  and  selling  so  as  to  give  the  store  a  good  reputation 
among  its  patrons,  and  who  manages  the  entire  establishment 
so  that  the  stockholders  or  owners  are  satisfied  with  the  re- 
turn on  their  investment. 

Merchandise  manager. — The  merchandise  manager  is  the 
store  expert  on  goods,  on  demand,  and  on  supply.  He  is 
the  student  of  the  markets,  both  for  buying  and  selling. 
He  follows  the  variations  of  prices  of  every  article  in  which 
his  store  deals.  He  apportions  the  funds  for  buying  among 
the  departments,  counsels  the  buyers,  examines  all  of  their 
orders  for  purchases,  and  passes  upon  all  invoices,  discounts, 
and  other  bills  for  goods.  All  buying  correspondence  must 
pass  through  his  hands.  Special  sales,  mark-downs,  and 
extensive  changes  in  goods  displays  are  all  planned  by  the 
merchandise  manager. 

All  of  the  buyers  and  their  salespeople  are  responsible 
to  him,  and  he  is  responsible  to  the  general  manager  for  all 
purchases,  sales,  profits,  and  losses.  No  commercial  posi- 
tions pay  higher  salaries  than  does  this  one.  Some  mer- 
chandise managers  receive  $10,000  per  year,  while  as  high 
as  $100,000  have  been  paid  by  two  or  three  of  the  largest 
stores  in  the  country. 

Buyers. — Most  stores  have  found  it  advisable  to  depart- 
mentize ;  that  is,  to  classify  the  selling  according  to  the 
kinds  of  goods  sold.  The  department  store  is  an  example 

155 


RETAIL    SELLING   AND    STORE    MANAGEMENT 

of  this  departmentization.  But  not  only  has  it  been  profit- 
able to  departmentize  according  to  broad  lines,  as,  for 
example,  drygoods,  groceries,  boots  and  shoes,  men's  cloth- 
ing, hardware,  furniture,  drugs,  and  so  on;  each  of  these 
in  turn  has  been  subdivided  into  departments.  Take  a  cloth- 
ing store  for  example — its  departments  may  be  men's  suits, 
overcoats,  children's  clothing,  hats,  collars  and  neckwear, 
shirts,  underwear,  and  possibly  several  others.  A  list  of 
typical  departments  in  a  drygoods  store  is  given  in  Plate 
IV.  Each  department  is  a  complete  little  store  by  itself 
except  for  certain  general  services  performed  for  all  de- 
partments in  common,  such  as  delivering  goods  and  keeping 
credit  records. 

The  buyer  is  the  storekeeper  in  his  department.  In  fact, 
his  "store"  is  often  a  much  larger  affair  than  most  small  re- 
tail houses  of  a  few  years  ago.  His  stock  may  amount  to 
thousands  of  dollars.  As  the  storekeeper  or  head  of  the 
department,  his  duties  can  readily  be  understood.  He  is  re- 
sponsible for  the  results  of  his  department  to  the  mer- 
chandise manager.  He  keeps  track  of  his  stock,  the  sales, 
gross  profits,  and  net  profits  of  his  department.  He  orig- 
inates suggestions  and  selling  plans  which  he  proposes  to 
the  merchandise  manager  and  advertising  man.  Finally,  he 
is  a  specialist  in  the  study  of  popular  demand  for  the  lines 
carried  in  his  department,  and  buys  the  goods  which  will 
bring  the  best  results.  In  his  buying  he  is  under  the  direc- 
tion of  the  merchandise  manager,  but,  except  for  limitations 
as  to  amounts  of  money  to  spend  and  general  suggestions, 
he  is  generally  given  rather  a  free  hand,  with  the  injunction 
from  his  superiors  to  "make  good." 

It  is  his  duty  to  call  the  attention  of  the  salespeople  to 
new  goods,  explain  their  talking  points,  and  keep  the  sales- 
people keyed  up  and  anxious  to  do  well.  He  looks  after  the 
arrangement  of  the  stock,  carefully  watches  to  avoid  the 
accumulation  of  dead  stock,  and  makes  recommendations 

156 


EFFICIENCY   AND    STORE   ORGANIZATION 

for  mark-downs  in  prices  in  order  to  move  any  goods  that 
appear  unpopular  at  the  regular  prices.  As  will  be  ex- 
plained in  the  chapter  on  advertising,  he  supplies  the  adver- 
tising man  with  the  necessary  idea  for  the  space  which  his 
department  is  allowed. 

Assistant  buyers. — Frequently  a  buyer  is  the  head  of 
more  than  one  department;  in  this  case  he  gives  such  time 
and  service  to  each  department  as  an  independent  store- 
keeper would  give  to  the  several  departments  of  his  store. 
But  whether  a  buyer  purchases  for  more  than  one  depart- 
ment or  not,  an  assistant  buyer  is  a  valuable  official  in  a 
large  store.  The  assistant  acts  for  the  buyer  whenever  the 
latter  is  absent.  The  assistant  can  also  be  of  great  use  in 
keeping  track  of  the  routine  and  clerical  work  of  the  de- 
partment. He  may  assist  in  making  up  stock  plans  and 
stock  records.  To  him  may  be  assigned  the  work  of  fol- 
lowing up  special  orders  and  hastening  deliveries.  He  may 
also  be  of  assistance  in  making  the  necessary  department 
reports  for  the  records  office.  This  work  serves  as  splendid 
training  for  the  man  who  aims  to  become  a  buyer.  The 
salaries  of  good  buyers  run  all  the  way  from  $1,000  up  to 
$10,000  per  year.  Assitant  buyers  average  about  $15  per  week. 

The  alteration  department. — In  Plate  III,  the  alteration 
department  is  shown  as  being  under  the  supervision  of  the 
buyers.  This  should  be  the  case  in  all  ready-to-wear  depart- 
ments handling  goods  that  may  require  alterations  to  suit 
customers.  If  there  is  a  department  handling  such  goods 
in  the  store,  the  buyer  for  that  department  should  be  made 
responsible  for  its  efficient  operation.  Good  buying  presup- 
poses the  buying  of  goods  that  will  fit  well.  Poor  buying 
will  result  in  the  need  for  more  alterations  than  good  buy- 
ing. If  the  buyer  is  made  fully  aware  of  this  by  mak- 
ing him  and  his  department  stand  the  loss  due  to  the  ex- 
pense of  alterations,  he  will  buy  more  carefully  than  he 
might  otherwise. 

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RETAIL    SELLING   AND    STORE    MANAGEMENT 

Factory  system  in  alteration  department. — The  altera- 
tion department  should  be  operated  on  the  same  system  as 
a  special-order  factory.  It  should  be  fitted  with  the  best 
appliances  and  surroundings  for  the  work,  such  as  im- 
proved machines,  good  light,  heat,  and  good  air.  By  a  sys- 
tem of  cost  accounting,  it  should  be  possible  to  determine 
in  each  alteration  just  what  its  cost  to  the  store  is,  so  that 
the  buyer  may  be  made  fully  aware  of  the  situation,  and 
so  that  the  most  effective  methods  of  making  the  alterations 
may  be  devised. 

The  salespeople. — Directly  under  the  buyers  are  the 
salespeople.  They  are  responsible  for  the  sale  of  the  goods. 
Their  duties  have  been  discussed  in  detail  in  the  preceding 
chapters. 

City  shoppers. — The  merchandise  manager  often  has  a 
special  class  of  assistants  known  as  city  shoppers.  These 
individuals  are  employed  to  go  about  among  the  other  stores 
in  the  city  and  learn  what  the  stores  are  doing,  the  prices 
they  are  making,  original  methods  of  selling  or  display,  and 
about  arrivals  of  new  lines  of  goods.  Reports  are  made 
personally  upon  these  points  to  the  merchandise  manager, 
who  thereby  keeps  fully  in  touch  with  competition. 

The  advertising  department. — Practice  differs  greatly 
with  respect  to  advertising  and  the  duties  and  powers  of  the 
advertising  man.  In  some  stores  he  has  great  power;  in 
others  he  counts  for  little  in  the  organization.  Generally 
speaking,  his  influence  seems  to  be  increasing.  It  should 
be  said  that  in  most  retail  stores  the  advertising  department 
is  not  given  a  co-ordinate  place  with  the  other  three  big  de- 
partments. In  some  cases  the  advertising  man  is  an  assist- 
ant of  the  merchandise  manager.  Logically,  this  seems 
the  proper  relation,  since  the  merchandise  manager  is  re- 
sponsible for  the  sale  of  the  goods  of  the  store  and  the  ad- 
vertising man  helps  to  build  up  favorable  attention  and  in- 
terest in  the  goods.  But  experience  in  a  number  of  houses 

158 


EFFICIENCY   AND    STORE   ORGANIZATION 

has  shown  that  the  best  arrangement  is  to  have  one  man  com- 
bine the  functions  of  merchandise  manager  and  of  ad- 
vertising manager  as  w^ll. 

Where  the  positions  of  merchandise  manager  and  general 
manager  are  rilled  by  separate  individuals,  both  the  adver- 
tising man  and  the  merchandise  man  report  directly  to  the 
general  manager,  who  obtains  co-operation  from  both  for  the 
general  good  of  the  business. 

Frequently  the  window-trimmer  and  the  card-writer  work 
under  other  officials  than  the  advertising  manager.  This  is 
illogical  where  the  latter  is  a  strong,  able  man  who  fully 
understands  store  publicity.  The  displays  and  advertising  of 
a  store  need  to  be  correlated  closely,  and  if  all  of  this  is 
done  under  the  direction  of  the  advertising  department,  the 
results  are  most  effective.  Where  the  window-trimmers  and 
card-writers  are  scattered  under  other  heads,  there  is  usu- 
ally weakness,  or  suspicion  of  weakness,  in  the  advertising 
department. 

In  many  cases  the  general  manager  is  the  real  advertis- 
ing manager,  and  the  so-called  advertising  man  is  but  a 
copy-writer.  When  advertising  men  understand  retailing 
more  fully,  in  addition  to  the  matter  that  constitutes  their 
art,  this  situation  will  pass  away. 

Wherever  a  store  has  encouraged  the  ordering  of  goods 
by  mail,  the  advertising  department  has  usually  been  re- 
sponsible for  getting  the  mail  orders,  and  has  had  to  supply 
the  means  for  managing  this  business.  The  "shopper" 
shown  in  Plate  III  fills  the  mail  orders  from  the  various 
departments  of  the  store;  she  tries  to  buy  from  the  cus- 
tomer's point  of  view,  and  seeks  to  get  as  good  a  bargain 
as  possible.  In  this  way,  when  the  shopper  is  efficient  and 
in  earnest  about  satisfying  her  mail-order  customers,  these 
customers  often  get  the  best  goods  the  house  has  to  offer 
at  the  price  the  customers  are  willing  to  pay. 

The  mail-order  department  in  the  small  town  store  is  in  an 

159 


RETAIL    SELLING    AND    STORE    MANAGEMENT 

uncertain  position.  Many  who  have  tried  selling  in  this 
way  have  found  that  it  does  not  pay  its  own  expenses. 
More  fortunate  ones  report  that  it  just  about  carries  itself, 
and  that  as  a  result  of  this  kind  of  selling,  the  store  gets 
good  advertising  which  results  in  increased  sales  over  the 
counter.  Some  dealers  maintain  that  the  mail-order  depart- 
ment of  the  average  store  is  the  best  answer  to  the  ques- 
tion, "What  is  to  be  done  about  the  competition  of  the  great 
central  mail-order  houses?"  Whether  this  is  the  right  an- 
swer is  still  an  open  question. 

The  store  superintendent. — The  store  superintendent  is 
the  general  in  command  of  the  store  and  its  operation.  He 
hires  and  discharges  the  employes.  Through  him  promo- 
tions are  made,  and  the  education  of  new  employes  is  pro- 
vided for.  Upon  the  superintendent  rests  the  responsibility 
for  proper  discipline  and  store  order.  Rivalries  are 
smoothed  out  by  him,  and  harmony  among  all  employes  pro- 
moted. 

The  superintendent  must  also  provide  for  the  establish- 
ment of  necessary  store  systems.  He  establishes  and  organ- 
izes the  delivery  department,  the  inspecting  and  wrapping  de- 
partments, and  the  exchange  and  complaint  departments. 
The  care  and  arrangement  of  the  building  are  within  his 
duties.  He  must  see  that  it  is  kept  clean,  properly  lighted, 
heated,  and  ventilated.  Changes  in  the  store  plan  are 
passed  upon  by  him.  Repairs  are  authorized  by  him,  and 
supplies  other  than  those  to  be  sold  again  are  purchased  in 
his  department.  To  do  all  this  work  he  may  have  a  small 
army  of  employes,  organized  in  groups  under  various  heads, 
as  in  large  stores ;  or  he  may  have  the  assistance  of  employes 
of  other  departments  of  the  store  for  certain  times  during 
the  day  in  cleaning  the  store,  arranging  fixtures,  providing 
drinking  water,  moving  goods,  etc.  The  superintendent's 
department  looks  after  everything  about  the  store  from 
building  annexes  to  setting  mouse-traps. 

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EFFICIENCY   AND   STORE   ORGANIZATION 

An  efficient  superintendent  knows  his  building  and  the 
location  of  practically  everything  in  it  from  top  to  bot- 
tom. He  is  the  efficiency  expert  within  the  store.  He  at- 
tends to  the  elevators  to  see  that  they  run  safely,  and  his 
so-called  "welfare  department"  attends  to  the  welfare  of  the 
employes  of  the  store — physically,  mentally,  and  morally. 
Lunch  rooms,  rest  rooms,  nurses,  educational  lectures,  edu- 
cational courses,  picnics,  outings,  concerts,  athletics,  sav- 
ings funds,  pensions,  sick  benefits,  all  fall  under  his  de- 
partment's management.  He  is  a  man  who  must  be  "on  the 
job"  early  and  late.  He  averages  daily  perhaps,  three  hours 
in  his  office  and  six  hours  about  the  store.  He  ought  to  be 
in  the  store  at  the  time  of  opening,  and  he  is  usually  among 
the  last  to  leave. 

Floor  managers. — As  assistants  of  the  superintendent, 
there  are  usually  a  number  of  officials  known  as  floor  and 
aisle  managers.  Upon  them  devolves  the  immediate  re- 
sponsibility of  keeping  their  respective  parts  of  the  store 
in  good  order,  and  of  enforcing  discipline  among  the  sales 
force.  Through  them  the  superintendent  has  indirect  super- 
vision over  the  work  of  the  salespeople. 

The  floor  managers  assist  the  salespeople  in  every  pos- 
sible way  in  the  making  of  sales.  They  meet  the  store's 
visitors  with  smiles  of  welcome.  They  assist  the  visitors 
in  finding  the  departments  that  are  sought.  They  are,  or 
should  be,  the  store's  courtiers.  They  watch  customers  to 
to  see  that  they  get  what  they  want  and  are  satisfied.  If  the 
salesman  fails  to  sell,  a  skillful  floor  manager  can  often  hold 
the  disgruntled  customer,  and  complete  the  transaction. 

While  strict  in  their  enforcement  of  the  rules  of  the  house, 
the  floor  managers  encourage  and  cheer  the  salespeople,  and 
keep  them  in  good  spirits  and  enthusiastic  in  their  work. 
Offering  suggestions  for  the  improvement  of  methods  of 
showing  the  goods,  pointing  out  selling  arguments,  or  snow- 
ing how  to  treat  hard  customers,  are  some  of  the  ways 

161 


RETAIL    SELLING   AND    STORE    MANAGEMENT 

in  which  the  efficient  floor  manager  gives  assistance  to  sales- 
people. 

The  floor  manager  obtains  from  the  card  writer  all  nec- 
essary signs  and  cards  for  the  store  displays.  He  sees  that 
these  cards  are  properly  placed;  also,  that  the  goods  and 
their  arrangement  look  as  they  should  from  the  customer's 
side  of  the  counter.  He  is  expected  to  suggest  changes 
whenever  he  has  any  in  mind.  All  lost  and  found  articles, 
as  well  as  change  that  is  left  by  customers,  are  turned  over 
to  him,  and  he  takes  them  to  the  general  office. 

He  must  look  after  the  lighting,  heating,  and  general  com- 
fort of  this  floor.  Undue  exposure  in  sunlight,  or  too  little 
light  are  points  he  must  note  and  correct  at  once  by  drawing 
curtains  or  turning  on  more  light.  In  short  the  floor  man- 
agers are  the  line  officers  of  the  store  army.  They  secure  the 
right  co-operation  among  the  departments.  Through  the  ac- 
tivity of  the  floor  managers  the  policies  of  the  store  towards 
customers  become  a  reality.  Salespeople  are  led  by  the 
floor  managers  to  co-operate  with  the  advertising  depart- 
ment. Deviations  from  the  regular  systems  of  the  records 
department,  such  as  unusual  demands  of  customers,  changes 
in  sales  slips,  etc.,  must  be  under  the  direction  and  by  per- 
mission of  the  floor  managers. 

Stenographers. — There  is  another  class  of  employes  un- 
der the  direction  of  the  superintendent.  Stenographers  are 
not  always  assigned  to  some  department  for  full  time ;  hence 
the  disposal  of  their  time  is  placed  under  the  direction  of  the 
superintendent.  When  any  one  in  the  store  has  occasion  to 
have  stenographic  assistance,  the  assignment  of  some  one  to 
do  the  work  is  made  through  the  superintendent. 

The  records  department.— We  cannot  here  go  into  de- 
tail concerning  the  work  of  the  records  department.  That 
would  require  a  book  by  itself.  This  text  would  not  be  com- 
plete, however,  without  a  brief  statement  of  the  purpose  of 
the  work  done  in  this  department.  Knowing  this  purpose, 

162 


EFFICIENCY   AND    STORE   ORGANIZATION 

the  salesman,  or  other  store  employe,  will  be  able  to  render 
much  better  co-operation,  and  to  get  more  information  of 
value  out  of  the  reports  from  the  department,  than  would 
be  the  case  without  this  knowledge.  The  books  and  records 
of  the  store  are  the  means  whereby  its  managers  determine 
the  success  of  work  that  has  been  done.  Without  them, 
the  best  and  most  efficient  store  managers  in  the  world 
would  waste  a  large  part  of  their  efforts.  Careful  ac- 
counting in  the  store  has  been  the  first  important  step 
towards  making  storekeeping  more  than  a  mere  occupa- 
tion. The  old  time  store  bookkeeping  systems  were  thought 
entirely  satisfactory  if  they  but  showed  a  cash  balance  cor- 
responding to  that  of  the  cash  drawer,  a  statement  of  the 
goods  on  hand  made  out  once  a  year  upon  varying  bases, 
and  a  list  of  the  notes  receivable  and  accounts  receivable. 
Balanced  with  these  were  the  liabilities,  such  as  notes  and 
unpaid  bills,  and  the  profits,  whatever  they  turned  out  to  be. 
No  one  knew  just  what  part  of  the  store  the  profits  came 
from.  In  fact,  it  is  now  known  that  in  many  of  the  old  time 
businesses  some  departments  were  carried  on  at  an  actual 
loss — a  fact  never  realized  until  better  accounting  systems 
were  established.  No  one  knew  what  the  costs  or  expenses 
of  selling  the  goods  were.  A  liberal  profit  was  added  to  cost 
prices,  with  the  hope  that  this  would  cover  all  expense  and 
yield  something  of  a  profit  besides.  Credits  were  handled 
unsystematically,  and  dishonesty  among  employes  was  com- 
mon— in  many  cases  never  discovered  because  of  the  loose 
system  of  handling  funds  and  accounts.  All  this  is  passing 
away  rapidly.  The  business  that  neglects  to  keep  full  rec- 
ords of  what  is  going  on  is  bidding  for  certain  failure  under 
modern  conditions. 

The  up-to-date  retail  store  accounting  system  provides  for 
accurate  figures  on  total  sales,  subdivided  into  cash  and 
credit  for  every  business  day,  not  only  for  the  entire  store 
but  for  every  individual  department.  From  the  average 

163 


RETAIL    SELLING    AND    STORE    MANAGEMENT 

amounts  of  mark-up,  the  percentage  of  profits  for  each  de- 
partment may  be  known  for  every  day.  As  a  check  against 
this  item,  there  is  kept  for  every  department  a  careful  rec- 
ord of  the  stock  on  hand — a  sort  of  perpetual  inventory 
which  will  show  the  amounts  of  goods  sold  for  any  given 
day,  and  the  amounts  on  hand.  The  expense  of  every  de- 
partment for  every  day  is  known  so  that  the  net  profits  also 
may  be  computed.  If  there  should  be  a  loss  instead  of  a 
profit,  the  reasons  therefor  should  be  determined  at  once, 
and  the  proper  remedies  applied. 

Careful  computations  and  totals  follow  for  the  weekly 
and  monthly  statements,  and  once  a  year  (twice  a  year  in 
some  stores)  a  thorough  inventory  is  taken  to  check  up  the 
methods  of  computing  amounts  of  goods  on  hand,  their  con- 
dition, and  their  value.  This  statement  is  made  most  com- 
plete for  every  department.  Plate  IV  is  an  example  of  such 
a  summary.  Notice  the  headings  and  the  detailed  computa- 
tion for  every  department.  Imagine  this  statement  on  the 
desk  in  front  of  the  general  manager;  explanations  for  the 
losses  must  be  made  to  him  in  any  department  in  which 
they  occur.  Such  statements  are  living  documents  point- 
ing with  certainty  at  difficulties  in  business  management; 
such,  for  example,  as  adverse  market  conditions,  poor  buy- 
ing, or  poor  selling.  If  the  market  conditions  are  at  fault, 
what  remedies  can  be  taken  to  suit  the  particular  business 
under  consideration?  If  the  loss  is  due  to  inefficiency  in 
the  store,  what  can  be  done  about  it?  There  need  be  no 
guess  work — no  charge  of  favoritism.  Either  a  department 
has  made  good  or  it  has  not.  This  does  not  mean  that  the 
best  of  buyers  with  the  best  of  store  systems  do  not  run 
behind  sometimes ;  but  with  a  complete  statement  of  actual 
results,  the  explanation  for  the  reverse  may  readily  be  found. 
If  the  difficulties  were  of  such  nature  that  none  could  fore- 
see them,  then  there  can  be  no  blame  attached.  But  every 
mistake  tends  to  be  a  valuable  lesson  to  the  buyers  and 

164 


EFFICIENCY   AND    STORE   ORGANIZATION 

managers  when  a  complete  system  of  records  is  in  opera- 
tion. 

Statistics  and  records. — Besides  financial  accounts,  the 
department  of  records  will  build  up  a  live  mailing  list  of 
possible  customers,  systems  for  checking  the  arrival  of 
goods,  results  of  every  advertisement,  files  of  prices,  dealers, 
addresses,  etc.  The  town  in  which  the  store  is  located  will 
be  analyzed  on  a  card  system  in  the  office  of  the  records 
department.  There  will  be  lists  of  the  names  of  all  the 
good  credit  risks  in  the  city.  Perhaps  a  spot  map  on  large 
scale  may  hang  on  an  inner  wall  showing  location  in  the 
city  of  the  regular  trade.  This  will  serve  as  a  guide  to  the 
advertising  man  and  to  the  buyers.  In  conclusion,  the 
records  department  will  keep  every  sort  of  record  that  will 
be  of  use  to  the  business. 

The  records  manager. — The  head  of  the  records  depart- 
ment needs  to  be  a  broadly  trained  accountant  and  systems 
expert,  and  needs  to  adapt  his  accounting  and  his  systems 
to  his  individual  business.  Where  credit  is  granted,  the 
proper  supervision  over  the  records  department  is  some- 
times a  difficult  matter  to  decide.  A  good  arrangement  in 
the  medium  sized  store  is  to  have  the  credit  man  at  the  head 
of  the  records  department.  His  work  has  long  been  recog- 
nized as  important ;  and  the  placing  of  this  official  over  the 
whole  records  department  assures  to  the  business  that  at 
least  the  important  accounting  of  credits  will  be  cared  for 
properly.  Obviously  the  collection  department  should  be 
under  the  credit  man,  as  has  already  been  pointed  out. 

Store  conferences. — There  is  one  other  sort  of  organi- 
zation in  a  store  that  merits  more  attention  than  it  has 
received,  and  that  is  the  conference.  First  of  all,  there 
should  be  a  weekly  council  of  heads  of  departments,  pre- 
sided over  by  the  general  manager,  at  which  the  selling  plans 
for  the  coming  week  should  be  discussed  by  buyers,  adver- 
tising man,  credit  man,  and  superintendent.  Here  definite 

165 


RETAIL    SELLING    AND    STORE    MANAGEMENT 

understandings,  without  likelihood  of  future  misunderstand- 
ings, could  be  reached,  and  the  validity  of  every  new  idea  or 
suggestion  could  be  tried  out  under  the  fire  of  criticism  from 
the  entire  group.  Frankness  here  would  not  mean  loss  of 
dignity  or  power  in  any  department,  for  the  final  decisions 
should  rest  with  the  general  manager  in  all  important  mat- 
ters. Time  may  be  saved  by  this  method  as  compared  with 
individual  conferences,  and  better  co-operation  assured. 

General  inspiration  meetings. — Another  valuable  form 
of  conference  is  of  slightly  different  character.  It  is  a  meet- 
ing, say  once  a  month,  of  all  the  salespeople,  presided  over 
by  the  store  superintendent,  the  merchandise  manager,  or 
the  general  manager.  Such  meetings  can  be  made  produc- 
tive of  great  value  in  arousing  enthusiasm,  emphasizing  the 
right  ideas  concerning  store  practice,  and  in  increasing  team- 
work in  all  departments.  Short,  brisk  speeches,  commonly 
called  "ginger  talks,"  are  effective  in  conferences  of  this 
sort.  Good  feeling  and  enthusiasm  should  be  the  key- 
notes. Every  salesman  should  feel  after  such  a  meeting 
that  he  is  anxious  to  get  back  into  the  work  and  outdo  all 
his  former  records.  Speeches  on  business  topics  by  outsid- 
ers who  can  give  stirring  addresses  are  of  value.  Traveling 
salesmen  of  much  experience  can  often  be  prevailed  upon 
to  address  such  a  meeting  or  at  least  a  group  of  the  sales- 
men who  are  to  sell  the  lines  in  which  he  is  interested. 
There  is  some  danger  of  overdoing  speech-making  unless 
care  is  exercised;  but  there  is  nothing  so  effective  in  get- 
ting the  salespeople  to  co-operate  with  each  other  as  a  lively, 
serious,  enthusiastic  meeting  of  all  the  store  workers. 


CHAPTER   XIV 
STANDARDS  OF  EFFICIENCY  IN  A  RETAIL  STORE 

Standards  in  business. — After  a  store  has  been  depart- 
mentized,  and  the  function  of  each  department  and  individ- 
ual has  been  defined  and  described,  there  should  follow 
an  attempt  to  eliminate  all  wastes  and  leaks.  This  subject 
has  been  considered  in  a  previous  chapter.  The  next  step  is 
the  setting-up  of  standards — standards  of  store  construction, 
equipment,  and  of  performance  in  every  department.  Suc- 
cessful experience  has  established  a  number  of  these  stand- 
ards; others  remain  to  be  discovered,  for  the  reason  that 
the  matters  involved  have  never  been  carefully  studied. 
A  knowledge  of  standards  by  managers  and  employes  fur- 
nishes a  guide  and  measure  for  the  construction  and  work 
of  the  store.  The  standards,  to  a  large  extent,  may  be  ap- 
plied in  any  kind  of  store.  For  example,  there  is  a  standard 
amount  of  light  and  ventilation  required  by  a  store,  de- 
pending only  upon  the  character  of  goods  and  the  number 
of  persons  that  the  store  is  to  accommodate.  Anything 
less  than  standard  light  and  ventilation  will  prove  injurious 
to  business  and  to  health  anywhere. 

Standards  are  not  applicable  to  every  phase  of  business, 
for  the  personality  of  individuals  often  figures  too  promi- 
nently ;  but  it  seems  likely  that  there  is  opportunity  for  set- 
ting up  many  more  standards  than  those  now  in  existence 
in  the  average  business. 

Here  is  a  field  of  opportunity  offering  an  almost  un- 


RETAIL    SELLING   AND    STORE    MANAGEMENT 

limited  number  of  problems  demanding  solution.  Make  the 
store  your  laboratory.  Study  every  item  of  its  construc- 
tion, its  goods,  and  its  service  with  reference  to  the  degree 
of  its  success  in  trade-getting.  Carefully  determine,  by  re- 
peated trials  and  by  finding  out  the  experiences  of  others, 
whether  every  practice,  piece  of  equipment,  or  operation  is 
as  successful  as  it  might  be.  Keep  your  mind  open  to  every 
suggestion  of  improvement  and  to  criticism,  and  be  slow 
to  draw  conclusions.  Remember  that  in  scientific  labora- 
tories where  the  natural  sciences  are  studied,  in  an  investiga- 
tion sometimes  hundreds  of  trials  or  experiments  are  needed 
to  prove,  or  to  disprove,  a  single  point.  Such  painstaking 
investigation,  with  the  conclusions  to  be  drawn  therefrom, 
will  be  highly  valuable  when  applied  to  business. 

In  view  of  the  extreme  youth  of  the  scientific  study  of 
retailing,  what  is  offered  here  can  hardly  be  called  more 
than  tentative  standards,  and  in  some  cases  merely  sugges- 
tions. Verify  what  is  stated  here,  and  decide  whether  it  is 
true  or  untrue  for  the  business  with  which  you  are  familiar. 

Standards  of  construction. — Consider  the  building  first. 
Store  fronts  are  rapidly  becoming  standardized  as  to  con- 
struction, window  space,  doorways,  and  proportions  of  the 
various  parts.  Fire  insurance  companies  are  forcing  mer- 
chants to  adopt  standard  fire-proof  construction.  Experi- 
ence seems  to  show  that  the  height  of  the  room  should  not 
be  less  than  fourteen  feet  in  the  clear  on  the  ground  floor, 
and  not  less  than  twelve  feet  on  other  floors ;  a  ten-foot  base- 
ment may  possibly  be  permissible,  however.  High  ceilings 
provide  increased  daylight,  purer  air,  and  give  the  impres- 
sion of  spaciousness. 

Floor. — The  first  choice  for  flooring  is  maple ;  the  second, 
oak.  Parquetry  floors  are  most  suitable  for  some  depart- 
ments. It  has  been  found  that  no  color  is  so  suitable  for 
floor  coverings,  carpets,  and  rugs  as  a  medium  shade  of 
green.  Steel  ceilings  are  favored  everywhere,  and  the  most 

168 


STANDARDS   OF   EFFICIENCY 

popular  color  for  ceilings  seems  to  be  either  white  or  a 
light  tint  of  green. 

Stairways. — Stairways  should  have  treads  of  certain 
height  and  width.  Upon  these  points  there  is  disagreement, 
although  there  should  be  none.  Some  store  architects  advo- 
cate treads  six  inches  high  and  twelve  inches  wide.  Others 
say  that  a  tread  seven  inches  high  is  better.  This  may  seem 
a  small  point,  but  it  is  really  one  that  is  very  important. 
The  store  manager  wants  a  stairway  that  the  majority  of 
people  can  walk  up  and  down  with  the  least  expenditure  of 
energy  and  with  the  least  feeling  of  discomfort.  It  should 
be  possible  to  determine  this  matter  by  test.  The  best  loca- 
tion for  stairways,  as  well  as  for  departments,  may,  per- 
haps not  be  standardized  so  easily.  Some  people  maintain 
that  the  stairway  leading  to  the  second  floor  should  be 
placed  at  the  far  end  of  the  store  at  some  distance  from 
the  main  entrance.  If  an  elevator  is  used,  it  should  ordinar- 
ily be  located  by  the  side  of  the  stairway.  Many  cus- 
tomers who  would  otherwise  use  the  elevator  will  walk  up 
or  down  if  the  elevator  happens  to  be  busy  and  if  the 
stairway  is  directly  before  them. 

Fixtures. — Counters  and  shelving  should  have  standard 
heights  and  widths  corresponding  to  the  uses  to  which  they 
are  to  be  put.  What  is  most  convenient  should  be  consid- 
ered standard.  For  example,  dress  goods  need  a  counter 
thirty-two  inches  high  and  twenty-six  inches  wide.  A 
counter  for  domestics  needs  to  be  thirty-six  inches  wide, 
while  a  glove  counter  needs  to  be  only  half  as  wide.  Stand- 
ard fixtures  should  be  simple  in  outline,  rich  in  appearance, 
well  kept,  and  free  from  all  beading  or  other  dust-catching 
and  dirt-gathering  decorations. 

Heat. — A  store  should  maintain  a  temperature  of  about 
65°  F.  uniformly,  with  a  relative  humidity  of  from  50  to  75 
per  cent.  By  humidity  is  meant  that  amount  of  moisture  in 
the  air.  All  air  contains  some  moisture.  But  when  there  is 

160 


RETAIL    SELLING   AND    STORE    MANAGEMENT 

too  little  or  too  much,  the  human  body  suffers  and  the  per- 
son breathing  it  becomes  tired,  cross,  careless,  and  sleepy. 
This  point  is  very  important,  and,  whenever  a  heating  sys- 
tem is  being  installed  in  a  store,  provision  should  be  made 
for  getting  air  not  only  of  the  right  temperature  but  also 
with  sufficient  moisture. 

Light. — The  lighting  should  be  adequate,  artistic,  and 
economical.  White  is  the  standard  color.  Artificial  lamps 
should  be  placed  so  that  there  may  be  no  shadows.  The 
light  should  be  steady  and  even.  For  daytime,  there  is  no 
light  that  is  so  suitable  as  daylight.  A  store  should  be  con- 
structed so  as  to  have  plenty  of  it.  Any  store  that  is  so 
dark  on  an  average  day  that  customers  must  strain  their 
eyes  to  see  the  common  qualities  of  the  goods  for  sale,  is 
too  dark.  There  is  a  scientific  test  for  the  lighting  of  a  store, 
but  it  is  somewhat  difficult  to  apply,  and,  for  ordinary  pur- 
poses, the  simple  test  of  eye-feeling  is  sufficient.  Standard 
light  is  such  as  to  permit  a  person  with  average  eyes  to 
study  the  goods  or  to  read  newspaper  print  without  eye 
strain. 

Air. — Every  individual  in  a  room  needs  about  fifty  cu- 
bic feet  of  fresh  air  per  minute.  That  amount  multiplied 
by  the  average  number  of  persons  in  the  store  during  the 
day  is  the  amount  that  must  be  supplied  and  passed  out 
of  the  building.  Many  merchants  wonder  why  their  sales- 
men are  so  listless,  unambitious,  and  lacking  in  initiative. 
It  is  almost  always  the  case  that  a  store  where  this  is  true 
is  one  that  is  not  ventilated,  lighted,  or  heated  properly. 
Usually  the  air  is  not  fresh  and  is  too  dry,  especially  in 
the  winter  time. 

Cleaning. — Standards  may  be  established  for  removing 
dirt  and  dust.  The  vacuum  cleaner  is  a  coming  necessity; 
but  in  the  meantime  the  sweepers  need  to  be  taught  the 
best  way  in  which  their  work  may  be  done ;  and  the  dusting 
needs  similar  study.  There  is  no  question  that  the  feather 

170 


STANDARDS    OF    EFFICIENCY 

duster  will  pass  away  as  a  result  of  careful  study  of  clean- 
ing methods. 

Score  card  for  stores. — The  state  of  North  Dakota  has  a 
sanitary  inspection  law  requiring  regular  inspection  of  all 
kinds  of  stores  dealing  in  foodstuffs.  The  inspectors  employ 
a  system  of  scoring  that  may  be  of  interest,  since  the  use 
of  the  score  card  clearly  implies  the  application  of  stand- 
ards not  only  to  details  but  to  the  whole  store. 

NORTH  DAKOTA'S  SCORE  CARD  FOR  GROCERY  STORES 

Points  perfect 

Ventilation  and  light 10 

Floors,  walls,  fixtures,  screens,  etc 10 

Refrigerator    10 

Butter  and  cheese 10 

Bulk  goods,  vegetables,  etc 10 

Display  of  goods  in  store 10 

Sidewalk  display    10 

Cellar  and  cellar  stock   10 

Back  room  and  yard 10 

Personal  cleanliness 10 

Total,   perfect  store    100 

The  inspectors  judge  each  item  separately,  and  the  reports 
of  the  use  of  the  system  state  that  scarcely  any  store 
scores  higher  than  a  total  of  90.  Since  the  standards  in 
this  case  are  mainly  sanitary,  the  grocer  whose  store  scores 
from  90  to  IOO  points  gets  the  best  kind  of  results  from 
advertising  his  rating.  The  public  is  beginning  to  be  inter- 
ested in  these  matters,  and  no  store  can  afford  to  lag  behind 
the  times.  The  list  of  items  on  which  North  Dakota  stores 
are  judged  is  suggestive  of  what  every  storekeeper  should 
attend  to,  whether  the  law  forces  him  to  do  so  or  not.  It 

171 


RETAIL    SELLING   AND    STORE    MANAGEMENT 

will  probably  not  be  long  before  most  states  will  regularly 
inspect  all  retail  stores,  and  will  demand  the  conditions  that 
progressive  merchants  now  find  profitable  in  their  business. 

Standards  in  buying  and  receiving  goods. — Buying 
offers  some  opportunities  for  standardization,  especially  as 
to  stock  to  be  kept  on  hand,  prices  that  can  be  paid  if  goods 
are  to  sell  at  a  certain  figure,  the  discount  expected,  and 
so  on.  There  should  be  standard  ways  devised  for  re- 
ceiving goods,  unpacking,  disposal  of  waste,  checking  of 
goods,  and  storing.  Stock-keeping  standards  will  result 
not  only  in  accurate  information  as  to  amounts  on  hand, 
but  also  as  to  the  best  ways  of  keeping  goods  so  that  they 
will  not  depreciate.  There  is  no  limit  to  the  number  of 
scientific  studies  that  can  be  made  in  stock  keeping,  for 
there  are  best  ways  of  doing  everything,  even  to  replacing  a 
pin  in  a  bolt  of  ribbon. 

Methods  of  inspecting,  wrapping,  and  change-making  are 
subject  to  considerable  improvement  in  respect  to  economy 
of  time,  of  energy,  and  of  expense.  Packages  should  be 
wrapped  in  a  certain  way;  the  wrapper  should  use  paper 
of  just  sufficient  size  and  twine  of  the  right  length.  Paper 
of  the  right  quality  should  be  selected;  in  this,  popular 
fancy  governs  to  some  degree.  For  example,  it  has  been 
proved  that  most  people  prefer  a  heavy  wrapping  paper 
and  a  heavy  string,  since  these  give  a  feeling  of  security. 
A  lighter  paper  and  twine  might  be  stronger,  but  they  really 
give  less  satisfaction.  Some  who  have  thoroughly  studied 
the  wrapping  paper  problem  maintain  that  it  is  more  eco- 
nomical to  use  paper  already  cut  to  convenient  dimensions 
than  to  use  paper  taken  directly  from  a  roll.  A  rule  can 
be  made  in  regard  to  the  use  of  paper  of  given  sizes  or  of 
paper  bags  of  various  sizes,  so  that  the  wrapper  will  use 
the  most  economical  size  for  each  article  to  be  wrapped. 
The  wrapping  itself  can  be  reduced  to  a  standard  system. 
Everyone  has  seen  great  differences  in  ability  and  speed 

172 


STANDARDS    OF   EFFICIENCY 

in  wrapping.  The  methods  of  the  best  wrapper  in  the  store 
should  be  taught  to  everyone  who  must  do  the  work.  Wait- 
ing for  change  is  somewhat  disagreeable  to  many  people. 
Cashiers  and  salesmen  should  be  trained  in  methods  of  mak- 
ing change  accurately  in  the  shortest  possible  time. 

Standards  for  salesmen. — In  the  selling  of  goods  there 
is  great  need  of  individuality  and  originality,  but  there  are 
a  number  of  things,  even  in  selling,  that  may  be  done  in 
certain  ways  that  are  always  better  than  other  ways. 
For  example,  orderly  arrangement  of  goods  on  shelves  or 
in  cases  so  that  the  salesmen  can  turn  to  just  what 
he  wants  without  a  moment's  hesitation  is  a  first 
requisite.  The  methods  of  displaying  goods  can  per- 
haps not  be  standardized,  but  there  will  surely  be  found 
standard  ways  that  are  applicable  under  given  conditions, 
as,  for  example,  methods  that  bring  the  articles  to  the  at- 
tention of  the  customer  in  the  most  favorable  light,  and 
involve  some  response  or  action  on  the  part  of  the  cus- 
tomer. Several  stores  have  already  standardized  the  meth- 
ods of  closing  the  sale,  what  to  say  to  suggest  the  buying 
of  further  goods,  and  how  to  get  information  as  to  whether 
the  sale  shall  be  for  cash  or  on  account.  They  have  also 
standardized  methods  for  making  out  sales  checks  or  slips. 
In  large  stores  new  employes  are  carefully  drilled  in  this 
matter  to  prevent  mistakes.  Every  possible  kind  of  sale  is 
studied  as  a  separate  problem,  and  the  salesman  is  not  per- 
mitted to  take  his  place  behind  the  counter  until  he  can 
make  out  correctly  the  proper  slip  for  every  possible  kind 
of  sale.  The  number  of  different  classes  of  sales  varies 
with  the  selling  policy  of  the  store ;  in  some  stores  there  are 
as  high  as  twenty,  while  in  others  there  may  not  be  more 
than  eight  or  ten.  A  strictly  cash  store  might  have  five  or 
six. 

Kinds  of  sales. — The  following  is  a  suggestive  list  of 
the  different  kinds  of  sales  for  which  slips  must  be  made 

173 


RETAIL    SELLING   AND    STORE    MANAGEMENT 

out  if  a  store  sells  both  for  credit  and  for  cash,  and  if  it 
stands  ready  to  make  exchanges  if  goods  are  not  satisfac- 
tory: 

1.  Cash  sale — customer  takes  goods  with  him. 

2.  Cash  sale — store  to  deliver  goods. 

3.  Charge  sale — customer  takes  goods  with  him. 

4.  Charge  sale — store  to  deliver  goods. 

5.  C.  O.  D.  sale. 

6.  Exchange  at  counter.  Customer  takes  goods  with  him. 

7.  Exchange  for  goods  of  higher  value.     Customer  has 

balance  charged — store  to  deliver. 

8.  Part  cash,  balance  C.  O.  D.  sale. 

9.  Part  charge,  balance  C.  O.  D.  sale. 

10.  Part  charge,  part  cash  sale. 

11.  Part  charge,  part  cash,  part  C.  O.  D.  sale. 

12.  Cash  sale  to  customer  with  transfer  purchase  ticket. 

13.  Cash  sale  to  customer  with  transfer  purchase  ticket. 

Salesman  receives  cash  from  customer  for  several 
department  purchases. 

14.  Cash  or  charge  sale,  goods  to  be  sent  to  two  or  more 

different  addresses. 

15.  Charge  sale  to  daughter  in  name  of  father. 

16.  Part  cash,  customer  leaves  goods;  will  call  next  day 

with  the  balance  and  is  to  take  goods  then. 

A  store  whose  system  demands  the  careful  use  of  sales 
slips  can  do  no  better  than  to  make  out  a  set  of  typical 
problems  involving  different  kinds  of  sales,  and  drill  all  new 
members  of  the  force  and  old  salesmen  as  well  who  make 
mistakes  frequently.  Errors  in  making  out  sales  slips  can 
be  avoided  by  such  instruction.  Most  metropolitan  stores 
teach  the  methods  of  making  out  sales  slips  by  regular  class- 
room methods,  followed  by  thorough  examination  before 
permitting  new  salesmen  to  make  sales. 

174 


STANDARDS   OF   EFFICIENCY 

Average  time  per  sale. — Some  merchants  have  sought  to 
increase  the  efficiency  of  their  salesmen  by  setting  average 
times  for  making  sales.  For  example,  a  men's  clothing  store 
reports  that  its  standards  of  selling  time  are  as  follows: 

To  sell  a  suit  of  clothes 30  minutes 

To  sell  a  shirt 5  minutes 

To  sell  a  collar 30  seconds 

It  is  possible  that  these  averages  may  be  suggestive  of 
what  can  be  done  in  other  lines.  But  there  is,  of  course, 
considerable  danger  in  this  sort  of  standard,  due  to  possible 
rushing  of  sales  where  the  customer  is  not  in  the  mood  to 
be  rushed.  This  mention  of  standard  time  is  intended  only 
as  a  suggestion.  What  does  need  attention,  however,  is 
the  matter  of  goods  arrangement.  There  should  be  no  un- 
necessary motions  or  loss  of  time  in  getting  out  the  goods 
that  the  customer  wants  if  the  store  has  them. 

Standard  conditions  for  employes. — The  manager  of  a 
store  can  increase  the  efficiency  of  his  salespeople  in  ways 
that  will  bring  their  hearty  co-operation,  since  the  benefits 
are  theirs  as  much  as  the  store's.  We  have  already  shown 
the  relation  of  good  health  to  salesmanship.  A  manager 
of  a  store  can  do  much  to  improve  the  health  and  good 
spirits  of  his  employes.  As  already  suggested,  this  means, 
first  of  all,  supplying  them  with  plenty  of  fresh  air  of  the 
right  temperature  and  humidity,  good  light,  and  suitable 
equipment  to  work  with.  These  things  pay.  The  providing 
of  good  ventilation  has  often  resulted  in  greatly  reducing  ab- 
sences caused  by  indisposition.  Improper  ventilation  of  a 
room,  when  it  does  not  actually  cause  sickness,  produces 
lassitude,  lack  of  ambition,  and  impatience;  and  sales  that 
require  quick,  keen  wit  will  be  lost. 

The  manager  has  a  right  to  demand  that  the  salesmen 
come  to  the  store  with  a  full  supply  of  energy  for  the  day. 
Keeping  late  hours  is  a  sure  way  of  reducing  this  energy. 

175 


RETAIL    SELLING   AND    STORE    MANAGEMENT 

The  average  person  must  have  eight  hours  of  sleep  every 
night  to  be  at  his  best,  year  in  and  year  out.  Hence  the 
employer  does  have  something  to  say,  indirectly  at  least, 
regarding  how  his  employes  spend  their  leisure. 

Store  service  to  employes  to  improve  selling. — Besides 
providing  these  general  conditions  of  good  health,  a  mer- 
chant can  do  even  more  to  increase  the  efficiency  of  his 
store.  Successful  establishments  find  that  it  pays  to  estab- 
lish rest  rooms,  to  send  employes  home  if  they  are  not  in 
the  best  of  physical  health,  and  to  establish  a  lunch  room 
if  the  number  who  will  take  advantage  of  it  is  large  enough, 
where  good,  nourishing  mid-day  lunches  are  sold  at  cost 
of  preparation. 

It  pays  for  a  store  to  urge  its  employes  to  take  outdoor 
exercise  every  day.  Some  stores  encourage  the  organiza- 
tions among  both  men  and  women  for  various  athletic 
sports,  cross-country  walks,  etc.  Outdoor  exercises,  if 
moderate,  store  up  energy  for  the  trying  work  of  the 
store. 

Every  store  employing  many  salespeople  should  have  a 
nurse  in  attendance  who  can  counsel  and  give  treatment  for 
simple  ailments,  such  as  colds,  headache,  toothache,  and  who 
can  examine  eyes,  ears,  nose,  and  throat  in  case  of  any 
suspected  trouble.  A  trained  nurse  will  be  able  to  detect 
symptoms  of  diseases,  such  as  anemia,  nervous  disorders, 
and  consumption;  and  as  a  consequence,  will  be  able  to 
give  the  advice  in  time  which  can  save  the  salesman 
great  expense,  possibly  life,  and  likewise  save  to  the  store 
a  valuable  assistant  whom  it  has  taken  a  long  time  to 
train. 

In  addition  to  these  duties,  a  nurse  or  physician  can  give 
health  talks  and  advice  to  employes,  either  individually  or 
in  groups,  on  matters  of  everyday  living,  such  as  foods, 
dress,  sleep,  recreation,  etc.  The  salary  of  the  average  sales- 
woman is  not  high.  If  she  is  supporting  herself,  it  is  highly 


STANDARDS    OF   EFFICIENCY 

essential  that  her  expenditures  for  the  necessities  of  life 
should  be  made  as  wisely  as  possible.  But  right  here  is 
where  hundreds  of  young  women  show  the  least  common- 
sense.  Through  ignorance  or  lack  of  training  in  these 
simple  matters,  the  gravest  mistakes  are  frequently  made. 
For  example,  if  unchecked,  many  otherwise  sensible  girls 
will  spend  five  dollars  for  a  pair  of  shoes  and  only  fifty 
cents  for  a  suit  of  underwear  with  which  to  meet  the  win- 
ter weather.  Many  have  expended  dollars  for  ornaments, 
and  have  tried  to  recoup  by  living  on  cheap  lunches.  This 
is  a  serious  problem,  and  one  that  demands  the  attention 
of  all  business  people.  In  the  first  place,  no  one  should 
be  required  to  work  for  less  wages  than  will  purchase  the 
bare  necessities  of  life.  In  the  next  place,  every  young  man 
and  woman  should  be  taught  how  to  make  the  best  use  of 
his  or  her  income.  If  the  health  of  the  body  cannot  be 
kept  up,  there  will  never  be  any  hope  for  the  inefficient 
to  become  efficient.  The  body  must  be  suitably  fed  and 
clothed  before  the  mind  can  learn  either  from  experience 
or  from  study.  A  person  improperly  clothed  or  fed  can- 
not see,  hear,  or  understand  well.  If  such  a  person  has  any 
energy  at  all,  it  is  of  a  nervous  type  that  will  wreck  the 
body  sooner  or  later. 

Some  stores  have  added  clothing  driers  to  their  equip- 
ment. The  clothing  drier  is  a  small  room  through  which 
a  dry,  hot  current  of  air  is  directed.  Persons  coming  to 
the  store  in  damp  or  wet  clothes  are  taken  to  this  room 
where  the  outer  garments  may  be  removed  and  hung  up, 
while  the  other  clothes  are  dried  quickly  by  simply  standing 
in  the  dry  air  current. 

Another  valuable  idea  for  improving  the  efficiency  of  the 
sales  force  is  the  periodical  examination  of  the  salespeople's 
feet  by  a  professional  chiropodist  who  gives  advice  on  the 
purchase  of  shoes  and  gives  needed  treatment  to  the  feet. 
To  salespeople  who  must  be  on  their  feet  most  of  the  time, 

177 


RETAIL    SELLING   AND    STORE    MANAGEMENT 

this  is  a  very  valuable  service.  Comfort  and  cheerfulness 
are  increased,  and  selling  ability  is  strengthened.  It  is 
profitable  for  any  store  manager  to  look  after  the  physical 
welfare  of  his  employes.  He  wants  them  to  be  in  the  best 
of  health.  They  are  happier  and  better  citizens  as  well  as 
better  salesmen  in  consequence. 

Education  for  efficiency. — The  demands  of  modern 
business  are  without  end.  Often  we  hear  that  it  takes  a 
lifetime  to  learn  what  ought  to  be  known  about  even  one 
department.  Experience  is  slow,  uncertain,  and  expensive. 
It  needs  to  be  supplemented  by  direct  education,  which  is 
nothing  more  or  less  than  an  attempt  to  short-circuit  the 
learning  process  which  naturally  goes  on  with  experience. 
Education  has  no  other  purpose  than  to  fit  for  life.  A 
complete  course  of  study  fits  for  complete  living.  Complete 
living  means  ability  to  earn  a  decent  living,  to  support  and 
care  for  a  family,  to  be  a  good  citizen,  and  to  enjoy  life  and 
to  contribute  to  the  enjoyment  of  others.  The  efficiency 
of  any  school  system  can  be  judged  by  anyone  who  will 
note  how  far  its  course  of  study  fits  for  complete  living. 
A  discussion  of  the  essentials  of  such  a  course  would  be 
out  of  place  here,  but  we  must  note  that  commercial  life  de- 
mands commercial  education.  Progress  has  been  so  ex- 
tremely rapid  in  business  that  but  few  public  schools  have 
kept  up  with  it  in  supplying  the  kind  of  education  needed  by 
those  going  into  business.  Business  men  sometimes  criticize 
the  schools,  but  frequently  their  criticisms  are  not  construc- 
tive; for  the  business  man,  himself,  cannot  see  how  the 
schools  can  adapt  themselves  to  commercial  needs.  Often 
he  falls  back  upon  recommendations  to  emphasize  what  he 
calls  the  essentials — reading,  writing,  arithmetic,  and  spell- 
ing. The  time  when  such  a  course  of  study  can  be  con- 
sidered sufficient  is  forever  past.  Experience  has  shown 
that  the  great  masses  who  study  these  subjects  and  no 
others,  no  matter  how  thoroughly,  cannot  master  even 


STANDARDS    OF   EFFICIENCY 

these.  To  make  spelling  and  writing  worth  while  in  the 
schools  from  a  commercial  standpoint,  it  is  necessary  to 
put  in  some  form  of  business  practice  that  will  bring  spell- 
ing and  writing  into  use.  Few  can  learn  to  spell  so  that 
they  can  apply  their  knowledge  in  after  life  without  mis- 
take by  merely  studying  the  arrangement  of  letters  in  a  list 
of  words.  The  new  education  which  is  in  the  process  of 
finding  itself,  and  which  will  satisfy,  after  its  machinery  is 
fully  understood  and  in  working  order,  will  include  shop 
work  for  the  mechanical  student,  field  work  for  the  agri- 
cultural student,  domestic  science  for  the  homemaker,  and 
business  practice  for  the  business  man  or  woman.  Read- 
ing, writing,  arithmetic,  and  spelling  will  be  studied,  but  in 
connection  with  their  practical  applications.  This  is  the 
only  way  that  the  so-called  fundamentals  can  be  learned 
practically.  Business  people  must  urge  these  new  changes 
in  the  course  of  study.  A  large  percentage  of  the  graduates 
of  the  public  schools  go  into  business,  and  business  should 
not  be  neglected  in  school  courses  of  study. 

Practical  training  in  selling  routine. — In  the  meantime, 
for  the  benefit  of  those  already  in  business,  some  sort  of 
supplementary  education  is  beneficial  if  not  absolutely  nec- 
essary. In  the  first  place,  every  salesman  needs  to  be  care- 
fully taught  the  routine  work  of  his  department;  and  of 
this  routine  the  making  out  of  sales  slips  is  an  important 
item.  The  manager  of  experience  should  know  in  advance 
what  errors  a  new  man  is  likely  to  make.  Instruction  should 
be  given  covering  these  points.  The  following  list  of  sales- 
men's excuses  for  mistakes  is  suggestive  of  what  can  be 
done  in  the  way  of  instruction  that  has  for  its  purpose  the 
doing  away  with  errors : 

"My  pencil  slipped." 

"My  hand  slipped." 

"I  didn't  read  it  right." 

"I  looked  at  the  wrong  number." 

179 


RETAIL    SELLING   AND    STORE    MANAGEMENT 

"I  got  the  figures  turned  around/' 

"I  spelled  it  wrong." 

"I  gave  the  wrong  price." 

"I  cut  off  too  much  (or  too  little)." 

Forewarned  is  forearmed.  The  salesman  can  be  taught 
what  to  do,  so  that  any  of  these  or  other  mistakes  will  be 
inexcusable.  He  can  be  shown  how  to  do  things  in  stand- 
ard ways  so  that  errors  become  unlikely.  Much  can  be  done 
by  fitting  employes  into  the  places  that  they  can  fill  the  best. 
An  unsuccessful  salesman  in  one  department  may  be  shifted 
to  another  department  often  with  resulting  success. 

Practical  education  in  theory. — Besides  being  instructed 
in  routine  methods  such  as  those  that  have  been  described, 
store  employes,  especially  salesmen,  need  to  be  instructed 
so  that  they  may  know  something  of  the  great  system  of 
business,  something  of  the  fundamental  principles  of  eco- 
nomics and  of  psychology — the  sciences  which  underlie 
modern  business.  Commercial  geography,  especially  as 
related  to  the  goods  handled,  and  the  principles  of  selling 
and  their  practice  need  to  be  learned  by  every  salesman. 

Judging  salesmen. — In  judging  a  salesman,  there  are 
several  things  that  the  manager  must  bear  in  mind;  it  is 
not  only  the  ability  as  shown  during  the  past  week  or 
month  and  measured  by  the  number  of  sales  made  during 
that  period  that  should  be  considered.  A  number  of  condi- 
tions might  have  affected  the  record  very  materially.  Some 
of  these  conditions  may  always  remain  unknown  to  the 
manager.  Because  a  salesman's  past  record  may  not  accu- 
rately measure  his  efficiency,  therefore  the  manager  needs 
to  consider  the  salesman  not  only  in  the  light  of  his  past 
achievements  but  also  in  the  light  of  his  promise  for  the 
future.  The  salesman  needs  to  be  considered  both  for  the 
present  and  for  the  future  in  relation  to  his  employer,  to 
the  store,  to  the  other  employes,  and  to  the  customer. 
Many  factors  must  be  kept  in  mind  by  the  employer;  and 

180 


STANDARDS    OF    EFFICIENCY 

here  is  the  difficulty.  Human  minds,  even  of  employers, 
naturally  think  of  but  one  thing  at  a  time,  and  in  judging 
of  such  a  complex  matter  as  a  salesman's  ability  and  value 
to  the  store,  it  is  difficult  not  to  overlook  a  number  of  very 
important  details  at  the  time  of  making  the  decision.  Many 


SCORE  CARD  FOR  RETAIL  SALESMEN 


Perfect 
score 

Actual 
score 

Actual 
score  i  yr. 
later 

I.  PHYSICAL.     (Total  20  points) 
a.  Health  

10 

b.  Appearance  

2 

2.  Clothing  

2 

3.  Cleanliness  

2 

c.  Voice  

2 

d   Speech            ... 

2 

II.  INTELLECTUAL.     (Total  27  points) 
a.  Knowledge  of  English  

4 

b.  General  education  

4 

c    Technical  knowledge 

I.  Knowledge  of  the  house  (organization, 
policies,  history,  competitors)  

4 

2.  Knowledge  of  the  goods  

7 

3.  Knowledge  of  people  

8 

III.  PERSONALITY.     (Total  23  points) 
a.  Inclination  to  business  .... 

i 

b   Ambition 

2 

c.  Self-confidence  

d.  Determination  .  . 

e    Honesty 

f  .    Agreeableness  

§    Courtesy  and  manners 

.  Purity  

i.    Willingness  to  learn  

j     Willingness  to  co-operate 

k.  Promptness  

1     Frankness              .    . 

2 

n.  Enthusiasm  and  love  of  selling  

2 

IV.  SALESMANSHIP.     (Total  30  points) 
a.  Care  of  stock  and  department. 

2 

b.  Getting  attention  

3 

c.  Describing  and  showing  goods  

3 

d    Meeting  objections 

3 

e.  Persistence  

5 

f.    Convincing  the  customer  

4 

§    Closing  the  sale  . 

5 

5 

Total 

IOO 

PLATE  V. 

181 


RETAIL    SELLING    AND    STORE    MANAGEMENT 

employers,  therefore,  keep  records  of  their  employes,  to 
which  are  added  observations  from  time  to  time,  but  this 
record  is  more  often  simply  of  shortcomings  than  of  good 
points.  A  better  judgment  can  be  made  by  resorting  to  the 
use  of  a  complete  list  of  essential  qualities  and  character- 
istics and  by  scoring  these  on  some  fair  basis.  The  use 
of  a  score  card  is  not  new.  It  is  already  used  in  dozens  of 
different  ways,  including  the  judging  of  fitness  of  teachers, 
of  mechanics,  and,  in  some  instances,  of  salesmen.  A  copy 
of  a  score  card  for  salesmen  is  given  in  Plate  V.  It  will 
be  seen  that  it  summarizes  the  qualities  that  we  have  consid- 
ered in  detail.  It  places  before  the  eye  a  map  or  chart 
of  what  an  ideal  salesman  should  be  and  what  he  should 
possess.  Each  quality  has  been  given  more  or  less  arbi- 
trary value.  Some  will  think  that  the  value  assigned  to 
certain  qualities  is  too  low;  others  may  think  certain  ones 
too  high.  It  is  not  intended  that  the  illustrated  score  card 
shall  serve  for  anything  but  a  suggestion. 

To  score  a  salesman,  one  should  consider  his  qualities  as 
compared  with  the  ideal ;  the  ideal  is  "as  good  as  it  can  be  in 
anyone."  In  proportion  to  your  best  judgment,  give  for 
each  quality  such  proportion  of  the  "perfect"  score  for  that 
quality  as  you  think  the  salesmen  deserves.  Few  will  be 
found  who  will  not  receive  some  perfect  points,  but  few  will 
score  higher  than  95  points  in  total.  A  70  to  80  point 
salesman  may  be  considered  fair.  A  salesman  receiving 
from  80  to  90  should  be  called  good ;  and  one  getting  above 
90  is  excellent.  The  100  point  salesman  is  the  ideal. 

Use  of  the  score  card  for  salesmen. — Not  only  is  the 
score  card  for  salesmen  a  means  for  a  fair  estimate  of 
salesmen  by  the  employer,  but  it  is  also  an  outline  which 
should  be  of  help  to  the  individual  salesman.  It  will  help 
him  to  discover  his  own  weak  points  and  will  serve  as  a 
guide  to  what  he  should  do  in  improving  himself.  Each 
quality  can  be  built  up  systematically,  and  the  salesman  can 

182 


STANDARDS    OF   EFFICIENCY 

make  from  the  list  such  selections  as  he  thinks  will  need 
immediate  attention.  It  will  make  him  more  critical  of  him- 
self, for  one  cannot  sit  down  and  read  the  list  through 
thoughtfully  without  feeling  the  conviction  that  he  is  weak 
in  desirable  qualities  to  which  he  had  never  given  any  par- 
ticular attention  before.  It  is  quite  likely  that  a  score  card 
in  some  form  or  other  will  be  generally  used  in  the  future, 
especially  in  large  stores. 


CHAPTER   XV 
STORE  POLICY 

Importance  of  store  policy. — In  the  majority  of  the  stores 
of  any  large  city  there  is  not,  nor  can  there  be,  any  great 
difference  in  the  prices.  What  then,  makes  the  difference 
in  the  amount  of  trade  in  the  various  stores  ?  The  answer 
is  the  store's  policy  or  service  to  customers.  Competition 
in  modern  retailing  is  no  longer  so  much  a  matter  of  prices 
as  it  is  a  matter  of  supplying  the  customer  with  the  various 
items  of  service,  such  as  expert  salesmanship,  delivery, 
credit,  etc.  The  store's  policy  determines  its  future  growth. 

It  has  already  been  noted  that  a  policy  of  honesty  is  abso- 
lutely essential,  but  this  is  not  enough.  The  manner  in 
which  goods  are  sold,  cared  for,  inspected,  wrapped,  and 
delivered,  is  important  to  most  customers. 

One  effective  means  of  determining  the  results  of  the  pol- 
icy of  a  store  upon  its  customers  is  for  a  salesman  or  man- 
ager of  a  store  to  stand  near  the  door  and  watch  the  ex- 
pressions and  moods  of  the  customers  as  they  are  leaving 
the  building.  If  the  customers  appear  to  be  well  satisfied 
and  pleased  with  their  visit,  one  may  be  sure  that  the  store's 
policy  is  on  the  right  track.  If  there  is  disgust  or  dissat- 
isfaction depicted  in  their  faces,  that  is  sufficient  evidence 
that  there  should  be  a  change  in  the  policy  of  the  store. 

Weakness  of  "Get  all  you  can." — There  is  a  great  deal 
of  difference  in  the  policies  of  selling  among  the  various 
retail  stores.  The  motto  of  some  seems  to  be  "get  all  you 

184 


STORE   POLICY 

can"  or,  expressed  in  another  way,  "charge  all  the  traffic 
will  bear."  Such  a  policy  does  not  attach  to  itself  any 
great  amount  of  public  satisfaction.  Trade  that  comes  to 
a  store  with  this  policy  comes  there  because  it  cannot  get 
the  same  goods  elsewhere.  With  the  slightest  amount  of 
competition  in  the  field,  a  large  percentage  of  the  customers 
of  such  a  store  would  transfer  their  trade  elsewhere. 

Sell  at  fair  profit. — Another  policy  is  to  sell  goods  for 
a  fair  profit.  This  represents,  perhaps,  the  best  standard 
of  retail  service.  No  man  in  any  industry  or  occupation 
should  be  expected  to  give  his  service  without  a  fair  and 
just  return,  that  return  in  great  measure  being  determined 
by  the  returns  received  by  other  people  engaged  in  the  same 
work.  The  retailer  performs  a  real  service  to  society  and, 
therefore,  deserves  a  fair  return  for  his  work.  A  fair 
profit,  then,  is  his  share  of  the  social  distribution  of  wealth. 
To  be  sure,  there  will  be  differences  in  opinion  as  to  what 
constitutes  a  fair  profit.  With  good  reason  it  may  be  stated 
that  in  some  businesses  a  fair  profit  might  mean  as  high 
as  50  per  cent,  or  in  others  it  might  mean  as  low  as  2  per 
cent,  or  3  per  cent,  upon  the  capital  investment.  What  is 
fair  depends  very  largely  upon  the  conditions  surrounding 
the  business,  especially  the  risk  of  losses.  It  can  be  seen 
that  if  there  is  a  probability  of  losses  that  may  in  a  short 
time  wipe  out  any  accumulated  surplus,  it  becomes  neces- 
sary to  charge  such  higher  prices  for  the  goods  sold  as  to 
cover  these  expected  losses. 

"Sell  as  cheaply  as  you  can."— "Sell  as  cheaply  as  you 
can"  is  a  third  policy,  which  may  be  very  attractive  to  cus- 
tomers; but  when  carried  out  by  merchants  who  are  not 
fully  aware  of  the  possibilities  of  losses,  or  who  do  not 
carefully  compute  all  of  the  costs  that  enter  into  their 
business,  it  is  likely  to  end  in  destruction  of  the  business 
itself.  To  sell  for  a  fair  profit  may  well  mean  to  sell  as 
cheaply  as  one  can,  but,  in  the  ordinary  sense,  selling  as 

185 


RETAIL    SELLING   AND    STORE    MANAGEMENT 

cheaply  as  one  can  usually  means  to  turn  the  goods  at  a 
very  narrow  margin  above  cost.  Merchants  do  not  do  this 
usually  unless  they  wish  to  undersell  other  dealers  to  such 
an  extent  as  to  draw  their  trade.  Something  can  be  said 
for  this  policy  as  an  advertising  feature,  but,  when  it  is 
carried  out,  any  losses  that  may  occur  should  be  charged  to 
advertising  expense,  and  must,  necessarily,  be  made  up  in 
the  sale  of  goods  in  other  lines  or  at  some  other  time. 

Quality  of  goods. — The  policy  of  the  house  determines 
what  qualities  of  goods  shall  be  handled,  and  the  people  of 
the  community  quickly  come  to  understand  what  this  policy 
is.  There  is  absolutely  no  argument  for  or  against  hand- 
ling goods  of  any  particular  grade  or  quality,  except  the 
policy  of  the  house  in  its  attempt  to  reach  certain  classes  of 
trade.  If  it  wishes  the  trade  of  the  people  whose  standards 
of  living  are  high,  its  goods  must  necessarily  be  of  high 
quality ;  but,  on  the  other  hand,  if  the  store  is  located  where 
the  great  majority  of  the  people  have  a  low  income,  and 
must  necessarily  have  relatively  low  standards  of  living,  the 
quality  of  goods  sold  must  be  correspondingly  low;  but 
whatever  the  quality  selected,  it  should  be  based  upon  a 
careful  and  predetermined  policy,  after  a  thorough  study  of 
the  local  conditions  with  respect  to  the  probable  customers 
that  the  store  can  draw  upon. 

Trade-marked  and  nationally  advertised  goods. — The 
question  as  to  whether  a  store  should  handle  trade-marked 
and  nationally  advertised  goods  or  not  is  a  vital  one.  There 
are  many  arguments  for  the  handling  of  goods  of  this  sort. 
In  the  first  place,  some  of  these  goods  are  well  known  to 
everybody.  The  name  of  the  brand  is  at  the  tip  of  the 
tongue  every  time  a  want  for  such  an  article  is  felt.  It  is 
obvious  that  a  store,  to  serve  its  customers,  must  carry  such 
goods.  There  may  be  substitutes  equally  good,  and  yield- 
ing greater  profits  per  sale  for  the  merchant,  yet  the  ease 
of  selling  the  well-known  brand  and  the  amounts  sold  more 

186 


STORE   POLICY 

than  make  up  for  the  possible  difference  in  the  profit  on 
each  sale.  In  the  second  place,  national  advertisers  try  to 
create  sentiment  among  consumers  against  substitution  and 
in  favor  of  their  products.  This  advertising,  which  the 
manufacturer  calls  "educational,"  is  likely  to  be  effective 
among  those  classes  of  consumers  who  are  constant  readers 
of  papers  and  magazines.  There  will,  in  consequence,  be 
a  demand  for  goods,  and  this  demand  the  retailer  can  take 
advantage  of.  A  retailer  can  even  go  further  than  merely 
supplying  the  demands  already  created;  he  can  take  advan- 
tage of  the  national  advertising  in  his  locality  by  advertis- 
ing that  he  carries  the  advertised  goods.  Many  dealers  have 
shrewdly  used  the  advertising  material  of  manufacturers  to 
their  own  credit  and  profit.  Many  stores  have  found  it 
profitable  to  feature  nationally  advertised  goods  in  their 
newspaper  space.  Others  have  done  as  a  Wisconsin  drug- 
gist did,  who  drew  considerable  trade  by  making  up  a  win- 
dow display  of  advertising  pages  clipped  from  widely  known 
magazines  of  recent  publication,  each  page  containing  the 
advertising  of  some  toilet  article,  soap,  perfume,  safety  razor, 
etc.  In  the  center  of  this  display  he  placed  a  large  card  with 
the  statement,  "You  Can  Buy  These  Goods  Here." 

However,  there  are  certain  disadvantages  to  the  policy  of 
handling  nationally  advertised  goods,  which  should  be 
clearly  stated.  In  the  first  place,  the  nationally  advertised 
goods  usually  cost  the  retailer  more  and,  therefore,  in  a 
competitive  market  must  be  sold  at  a  narrower  margin  of 
profit  than  non-advertised  goods.  Whether  this  higher  cost 
is  due  to  higher  quality  or  to  the  expense  of  advertising, 
is  immaterial  at  this  point.  So  far  as  quality  is  concerned, 
the  merchant  should  know  what  he  is  buying  no  matter 
what  his  market  is.  In  the  food  stuffs,  strict  enforcement 
of  the  pure  food  laws  will  have  just  as  certain  effects  in 
insuring  quality  as  a  trade-mark  or  much  magazine  adver- 
tising. It  seems  likely  that  it  is  only  a  question  of  time 


RETAIL    SELLING   AND    STORE    MANAGEMENT 

when  all  necessities  of  life  must  be  branded  or  labeled  so 
as  to  show  accurately  what  the  contents  or  construction 
may  be.  If  the  merchant  fails  to  use  a  good  buyer's  judg- 
ment, and  handles  goods  which  vary  in  quality,  he  will  find 
that  he  will  lose  customers  after  every  drop  in  the  quality. 
If  the  buyer  cannot  guard  against  this,  then  there  is  an 
argument  for  advertised  and  trade-marked  goods.  But  not 
in  every  instance  is  a  large  advertising  appropriation  and  a 
well-known  trade-mark  a  guaranty  of  constancy  in  quality. 
There  are  numerous  instances  of  gradual  reduction  in  qual- 
ities after  a  demand  for  an  article  has  been  well  built  up, 
although  the  manufacturer  is  the  chief  sufferer  from  such  a 
condition. 

Where  the  advertised  or  trade-marked  goods  are  han- 
dled through  the  regular  trade  channels  and  sold  to  any 
dealer,  there  is  not  so  much  of  a  problem  as  when  the  man- 
ufacturer controls  his  own  distribution  and  sells  directly 
to  the  retailers.  Frequently  a  retailer  agrees  to  handle  a 
manufacturer's  article  upon  being  assured  that  he  will  have 
the  exclusive  selling  rights  in  the  town.  In  other  cases,  the 
retailer  may  agree  to  act  as  agent  for  the  article.  In  either 
case,  the  store  ties  itself  to  a  distant  concern  that  sometimes 
cares  nothing  for  it  beyond  the  trade  that  comes  from  it. 
Nearly  every  merchant  of  experience  can  cite  instances  in 
which  the  retailer  expended  much  time,  energy,  and  money 
in  building  up  a  local  reputation  for  the  goods  placed  with 
him  by  the  manufacturer  or  his  representative,  only  to  have 
his  account  taken  away  from  him  because  of  some  mis- 
understanding, or  because  the  manufacturer  believed  that 
some  other  store  would  bring  in  a  greater  amount  of  trade. 
To  be  sure  the  fault  is  not  always  the  manufacturer's  when 
an  account  is  taken  away  from  a  retailer ;  the  retailer  may  be 
inefficient  or  tricky ;  but  there  are  enough  cases  of  manufac- 
turers' failing  to  live  up  to  their  end  of  the  agreement,  to 
warrant  calling  attention  to  this  matter. 

188 


STORE   POLICY 

The  helps  or  assistance  given  by  manufacturers  vary  in 
value  greatly,  on  account  of  the  varying  ability  of  the 
manufacturers'  advertising  men  to  grasp  the  local  situation 
and  prepare  for  it.  Though  much  of  this  material  is  ex- 
cellent and  very  valuable  to  the  retailer  in  pushing  sales — 
better  than  most  retailers  have  either  the  time  or  ability  to 
prepare — still  it  aims  at  the  sale  of  only  a  particular  line  of 
goods,  and  if  the  retailer  does  not  use  this  material  judi- 
ciously, he  will  find  other  departments  in  his  store  losing 
ground. 

Manufacturers  make  a  good  deal  of  the  "great  wrong  of 
substitution."  When  examined  from  a  broad  standpoint  of 
social  welfare,  there  is  little  to  sustain  their  contention. 
Merchants  must  substitute  for  goods  not  obtainable.  What 
wrong  is  there  in  substituting  a  good  article  that  one  has, 
for  one  that  is  not  on  hand,  or  even  for  one  that  is  on  hand, 
but  which  for  some  reason  the  merchant  does  not  wish  to 
push?  To  be  sure,  the  national  advertiser  maintains  that 
after  he  has  created  a  demand  for  an  article  through  his 
advertising,  it  is  wrong  for  the  retailer  to  take  advantage 
of  the  market  so  created  by  supplying  some  other  product. 
This  is,  no  doubt,  bad  for  the  advertiser,  but  is  it  any  more 
than  an  ordinary  risk  of  business?  He  must  hazard  his 
chances  of  success  with  many  forms  of  competition  that  will 
arise  and  this  is  but  one  of  them.  It  is  the  business  of  the 
retailer  to  supply  the  demands  of  his  customers  in  a  way 
entirely  satisfactory  to  them,  and  in  a  way  that  will  yield 
the  best  profit  to  him.  If  a  customer  will  not  take  a  sub- 
stitute or  will  not  be  as  well  satisfied  with  the  substitute  as 
with  an  article  asked  for,  then  the  retailer  will  lose.  That 
is  the  criterion  of  what  is  right  and  what  is  wrong  in  this 
economic  field.  From  a  social  standpoint  honest  goods  at 
fair  prices,  efficient  service,  and  satisfied  consumers  are  the 
things  desired  of  business.  In  the  long  run,  it  makes  little 
difference  how  these  things  are  achieved.  Trade-marks, 


RETAIL   SELLING   AND    STORE    MANAGEMENT 

mottoes,  slogans,  and  magazine  advertising  are  only  a  means 
to  this  end.  Some  other  means  might  serve  just  as  well. 
Trade-marks  and  advertising  are  used  by  manufacturers 
simply  because  they  hope  to  profit  thereby.  The  retailer  is 
amply  justified  in  applying  the  same  test  in  his  own  business 
regarding  any  proposition  made  to  him  to  share  in  the  plans 
of  the  larger  dealer;  viz.,  will  it  pay  him? 

Most  retailers  can  handle  some  widely  advertised  and 
trade-marked  goods  to  advantage,  but  they  should  not  forget 
that  there  is  a  real  problem  in  connection  therewith.  Some 
retailers  in  the  larger  cities  have  found  it  profitable  to  handle 
only  such  goods  as  they  may  have  the  opportunity  of  put- 
ting their  own  brand  names  upon.  There  is  one  situation, 
however,  in  which  nationally  advertised  and  trade-marked 
goods  undoubtedly  offer  the  best  opportunities  to  the  re- 
tailer, and  that  is  in  the  small  town  where  the  local  brand 
or  name  of  the  dealer  stamped  on  the  goods  would  not  be 
nearly  so  effective  in  selling  them,  as  the  nationally  known 
trade-mark  of  the  manufacturer.  Manufacturers  and  other 
large  distributors  who  use  national  advertising  are  rapidly 
coming  to  see  the  retail  merchant's  point  of  view,  and  are 
fitting  their  policies  to  the  needs  of  the  retailer.  The  reaJ 
interests  of  the  retailer  and  the  manufacturer  are  the  same 
and,  to  the  extent  that  both  realize  this  fact,  it  will  be  pos- 
sible for  them  to  co-operate  to  their  common  advantage. 

One  price  to  all. — Each  store  must  decide  for  itself  what 
policy  it  shall  follow  regarding  the  prices  it  shall  charge — 
whether  it  shall  have  a  sliding  scale  or  one  price  to  all.  It 
may  be  said  that  the  tendency  is  growing  in  all  directions 
to  adopt  the  one  price  policy.  It  has  many  advantages, 
and  is,  in  fact,  absolutely  essential  in  large  department 
stores.  A  one  price  policy  raises  the  standards  of  retailing. 
It  increases  the  faith  of  the  customer  in  the  house ;  it  places 
competition  upon  a  higher  plane.  The  one  price  house  is 
tempted  from  time  to  time,  and  tempted  sorely,  to  depart 

190 


STORE   POLICY 

from  its  rule.  This  temptation,  unless  it  is  firmly  resisted,  is 
the  great  obstacle  to  the  success  of  the  policy;  for  if  any 
customer  buys  his  goods  at  any  time  at  less  than  the  stated 
regular  price  he  loses  his  confidence  in  the  house  at  that 
point,  and  the  efficacy  of  its  advertising  is  weakened  there- 
after. It  may  be  stated  as  a  rule  that  if  the  one  price 
policy  is  adopted,  to  be  successful  it  must  be  followed  to 
the  letter  and  not  departed  from  under  any  circumstances. 

Getting  new  business. — There  are  standards  in  retailing 
that  have  to  do  with  the  methods  of  getting  new  business ; 
they  constitute  a  part  of  the  so-called  retail  store  ethics.  A 
few  years  ago,  comparatvely,  no  storekeeper  went  beyond 
the  doors  of  his  store  to  solicit  trade  in  any  manner.  Later, 
modern  advertising  was  introduced.  At  first  all  advertis- 
ing was  stiff  and  formal,  being,  on  the  whole,  but  little  more 
than  general  notices  to  the  effect  that  certain  lines  of  goods 
were  for  sale.  More  recently  the  advertising  of  retail  stores 
has  adopted  the  style  and  tenor  of  "news."  This  is  now 
considered  to  be  the  best  as  well  as  the  most  effective  kind 
of  advertising. 

There  is  still  an  open  question  as  to  whether  the  retail 
store  may  not  take  one  step  further  and  go  out  to  solicit 
trade  from  house  to  house.  There  are  circumstances  under 
which  this  would  result  in  injury  to  the  business,  but  on 
the  whole  the  stores  that  have  attempted  it  are  succeeding. 
As  an  example  of  successful  personal  solicitation,  the  fur- 
niture houses  in  many  cities  have  carried  out  a  well-defined 
policy  of  selling  house-furnishings  of  various  kinds  by  per- 
sonal solicitation,  especially  to  such  persons  as  have  just 
moved  from  one  home  to  another  within  the  city,  or  have 
come  to  the  city  from  some  other  town.  These  houses  have, 
as  a  first  step,  carefully  devised  systems  of  getting  informa- 
tion regarding  the  people  who  are  moving,  or  who  have 
just  moved,  usually  with  the  co-operation  of  men  who  make 
a  specialty  of  moving  furniture  and  household  goods. 

191 


RETAIL    SELLING   AND    STORE    MANAGEMENT 

Other  retail  stores  which  have  not  adopted  the  policy  of 
selling  by  house  to  house  solicitation,  send  representatives 
to  visit  all  of  the  homes  in  the  community,  simply  to  adver- 
tise the  house,  to  call  attention  to  the  goods  that  the  store 
has  for  sale,  and  to  invite  the  people  to  inspect  them. 

Some  merchants,  especially  grocers,  have  found  the  tele- 
phone to  be  effective  in  solicitation.  Telephone  order  boards, 
where  one  or  more  operators  call  up  the  customers  of  the 
store  each  morning  and  make  inquiries  concerning  their 
needs  for  the  day  are  found  in  many  places;  this  method 
of  solicitation  could  be  advantageously  used  in  many  other 
stores. 

Meeting  competition. — What  policy  should  be  adopted 
in  meeting  competition  is  another  important  point  for  a 
store  to  decide.  The  most  successful  merchants  keep  close 
watch  of  competition  in  their  communities;  but  they  say 
nothing  in  public  about  competition.  "Knocking"  is  abso- 
lutely proscribed.  It  is  a  recognized  psychological  fact 
that  if  one  dealer  begins  to  find  fault  with  others,  the 
people  who  hear  him  have  their  attention  called  to  his 
competitors,  and,  in  many  cases,  they  have  their  curiosity 
and  even  interest  aroused  to  the  extent  of  wishing  to  see 
what  it  is  that  the  competitor  has  to  offer;  in  other  words, 
they  resolve  to  give  the  competitor  a  trial.  There  is  a  sensi- 
ble saying:  "If  your  competitor  talks  about  you,  put  him 
on  the  pay-roll;  never  mind  what  he  says,  so  long  as  he 
talks/' 

Business  courtesy. — After  the  fundamental  policies  of 
quality  of  goods  to  be  handled,  prices  to  be  charged,  meth- 
ods of  getting  business,  etc.,  are  adopted,  there  are  still 
other  policies  to  be  considered,  which  refer  more  directly 
to  the  manner  in  which  the  business  is  to  be  conducted,  as 
between  the  house  and  its  patrons.  The  chief  of  these 
policies  has  to  do  with  the  degree  of  courtesy  shown  by 
the  employes  of  the  store  to  the  customers.  We  have 

192 


STORE   POLICY 

already  spoken  of  the  necessity  of  treating  visitors  who 
come  to  the  store  humanly  and  decently,  as  a  part  of  good 
salesmanship.  Here  we  need  to  emphasize  courtesy  as  a 
valuable  store  policy  to  be  followed  not  only  by  the  sales- 
men, but  also  by  the  elevator  boys,  cashiers,  inspectors, 
credit  man,  janitor,  delivery  man,  and  everyone  else  con- 
nected with  the  store  in  any  way. 

The  average  customer  is  suited  best  if  met  at  the  door 
immediately  upon  entering  with  a  polite  salutation  and 
inquiry  as  to  the  particular  department  or  article  in  which 
she  is  interested.  This  inquiry  needs  to  be  made  with  ap- 
propriate deference  and  respect  to  the  customer,  and  solely 
with  the  purpose  of  being  of  assistance. 

When  the  customer  reaches  the  department  where  she 
desires  to  see  goods,  the  salesman  should  come  forward 
promptly,  and  no  other  store  work  of  any  kind  should  keep 
him  a  moment  from  doing  this.  No  other  work  in  a  store 
is  so  important  as  serving  the  customer.  The  only  case 
when  the  salesman  may  not  come  forward  to  place  himself 
at  the  disposal  of  the  customer  is  when  he  is  already  occu- 
pied in  caring  for  other  customers.  But  even  then  he 
should  at  least  nod  recognition  to  the  newcomer,  with  a 
word  of  excuse  and  with  an  explanation  that  he  will  be  ready 
to  serve  her  in  a  few  minutes. 

If  possible,  he  should  give  her  something  to  do,  some 
goods  to  examine  or,  in  some  departments,  she  may  be 
offered  a  chair  so  that  she  may  be  seated.  The  main  point 
is  to  get  her  to  feel  at  home,  to  feel  that  her  presence  is 
wanted,  and  that  each  one  in  the  store  will  gladly  do  all 
he  can  for  her. 

Store  democracy. — Store  employes  need  to  be  demo- 
cratic, sensible,  and  never  snobbish.  In  many  stores  there 
are  employes  of  various  ranks  who  adjust  their  attitude  to 
the  appearance  of  the  customer.  Well  dressed,  rich-looking 
prideful  people  receive  altogether  more  than  their  share  of 

193 


RETAIL    SELLING   AND    STORE    MANAGEMENT 

the  deference  and  respect  of  the  store's  employes.  Not  that 
these  classes  of  people  should  not  receive  attention,  but  care- 
ful attention  and  courteous  treatment  should  be  accorded  to 
every  store  visitor  regardless  of  appearance  of  wealth  and 
class.  What  should  not  occur  is  well  illustrated  by  the  fol- 
lowing experience  in  a  store: 

A  woman  dressed  in  plain  garments,  of  slightly  out-of- 
date  fashion,  and  somewhat  worn  appearance,  waited  pa- 
tiently for  a  saleswoman  in  the  coat  department  to  finish 
with  a  customer  who  had  preceded  her.  Finally  the  sales- 
woman came  forward  and  made  the  usual  inquiries  of  the 
customer.  In  the  meantime  the  saleswoman  had  "sized  her 
up"  from  head  to  foot.  Suppressing  a  yawn,  she  remarked, 
"I  suppose  you  want  something  cheap,"  and  turned  on  her 
heel  to  bring  out  a  cheap  coat  to  show.  The  customer,  who 
was  really  a  cultured  woman  of  considerable  means,  shocked 
at  the  rudeness  of  the  saleswoman,  turned  and  walked  out, 
transferring  a  sale  of  some  value,  together  with  her  future 
trade,  to  a  rival  store.  Considerable  trade  is  lost  to  every 
store  because  of  rudeness  of  this  kind. 

Treatment  of  customers  who  do  not  buy. — Some  sales- 
men apparently  do  not  know  how  to  act  toward  customers 
if  a  sale  is  not  made.  A  customer  who  had  failed  to  get 
what  she  wanted  in  one  store  stated  that  because  she  in- 
sisted on  not  purchasing  a  substitute  for  the  article  she 
wanted,  she  was  made  to  feel  like  "an  ignoramus  and  a 
sneak."  This  is  a  strong  expression,  but  it  does  in  some 
degree  represent  how  the  feelings  of  customers  may  be 
ruffled  by  untactful  store  employes  when  a  sale  is  not  made. 
The  store  loses  not  only  one  sale,  but  also  the  customer's 
future  trade,  and  possibly  the  trade  of  the  customer's 
friends. 

Telephone  courtesy. — Every  store  needs  to  pay  special 
attention  to  its  telephone  calls.  In  no  other  phase  of  the 
store's  activities  does  courtesy  pay  better,  and  in  no  other 

194 


STORE   POLICY 

activity  is  its  lack  so  easily  noticed.  Many  whose  voices 
are  rough  and  whose  speech  is  uncouth  are  misunderstood 
and  misinterpreted  over  the  phone.  The  roughness  or  other 
peculiarity  in  voice  or  speech  is  taken  to  mean  discourtesy, 
when  the  face  and  manner  of  the  person  speaking  would 
disprove  the  intention  entirely.  Everyone  who  answers  tele- 
phone calls  in  a  business  place  should  be  thoroughly  schooled 
in  telephone  courtesy.  All  brusqueness,  curt  expressions, 
roughness  of  voice,  or  snappishness  in  speech  should  be 
eliminated  entirely.  Telephoning  is  a  fine  art,  and  few 
can  do  it  satisfactorily,  not  because  it  is  difficult  but  be- 
cause of  failure  to  imagine  what  the  effects  of  the  sound  of 
the  voice  or  the  speech  will  be  on  the  auditor  when  it  is 
not  possible  to  modify  the  effect  of  the  voice  and  speech 
by  facial  expression. 

The  answer  at  the  telephone. — When  the  telephone  bell 
rings,  the  tone  of  voice  of  the  clerk  who  answers  the  call 
must  be  taken  into  account.  ^A  dull,  machine-like  droning 
answer  is  even  worse  than  a  slovenly,  heedless  clerk  back 
of  a  counter.  The  merchant  who  would  keep  such  a  clerk 
could  hardly  be  found,  and  yet  the  best  merchants  some- 
times do  not  give  enough  consideration  to  the  way  in  which 
telephone  calls  are  answered. 

There  is  scarcely  anything  that  attracts  more  good  will 
to  a  house  than  a  bright,  vivacious,  cheery  voice  over  the 
telephone.  A  clear  enunciation,  a  tone  that  is  optimistic 
and  wide  awake,  a  diction  that  denotes  friendliness  rather 
than  the  too  frequent  "Why  do  you  disturb  me?"  attitude 
— these  are  better  assets  than  mahogany  office  chairs  and 
costly  bronze  doors. 

One  of  the  worst  offenses  against  telephone  courtesy  is 
the  common  custom  of  answering  a  telephone  call  by  say- 
ing "Hello!"  This  is  a  waste  of  time,  a  source  of  annoy- 
ance, and  an  indication  of  lack  of  knowledge  of  modern 
business  methods.  When  the  telephone  bell  rings,  the  per- 

195 


RETAIL    SELLING   AND    STORE    MANAGEMENT 

son  who  picks  up  the  receiver  should  immediately  tell  the 
name  of  the  store.  Thus :  The  bell  rings.  An  employe  puts 
the  receiver  to  his  ear,  and  says  "This  is  The  Fair,"  or  "This 
is  Brown  &  Smith's."  The  person  at  the  other  end  of  the 
wire  can  then  immediately  begin  his  message  without  any 
intervening  interchange  of  meaningless  "Hello's"  or  sim- 
ilar expressions.  If  the  telephone  call  is  answered  by  an 
employe  of  one  department,  he  may  say,  "This  is  Brown  & 
Smith's  silk  department." 

Suit  the  individual  customer. — Large  stores  usually  de- 
velop mechanical  ways  of  doing  things.  So  far  as  material 
things  are  concerned,  system  is  an  advantage;  but  system 
is  likely  to  be  detrimental  when  it  comes  to  handling  cus- 
tomers. The  small  store  succeeds  because  it  caters  to  in- 
dividuals :  it  serves  them  in  the  way  in  which  they  want  to  be 
served.  Each  individual's  hobbies,  and  we  all  have  them, 
need  to  be  considered  in  the  methods  and  policies  of  re- 
tailing. This  is  difficult,  but  no  less  necessary,  in  the 
larger  store.  The  customer  needs  to  be  humored.  The 
store  service  exists  for  that  purpose.  The  "Smith  way," 
the  "Brown  way,"  or  the  "Jones  way"  of  doing  business, 
if  it  means  to  make  all  customers  go  through  the  same 
system  in  getting  goods,  is  wrong  and  unprofitable.  Sys- 
tem in  a  store  needs  to  be  effective,  but  should  not  intrude 
itself  unduly  upon  the  customer.  His  individuality  must 
never  be  jolted  so  long  as  he  does  no  wrong.  The  most 
successful  store  is  the  one  that  can  adjust  its  selling  methods 
most  readily  to  the  greatest  number  of  individuals. 

Treatment  of  brides. — There  are  certain  classes  of  peo- 
ple that  stores  should  make  a  special  effort  to  reach  and 
to  please.  One  of  the  most  important  of  these  classes  is 
the  bride.  Her  wants  and  expressions  of  individuality 
should  be  met  with  the  utmost  delicacy,  helpfulness,  and 
courtesy.  She  is  laying  the  foundation  of  a  home.  Where 
she  receives  excellent  treatment  at  the  start,  she  will  likely 

196 


STORE    POLICY 

continue  to  trade  for  the  years  to  come.  The  friendly  help 
that  a  merchant  or  his  expert  salespeople  can  give  to  her  in 
many  ways,  showing  her  how  she  can  buy  and  utilize  her 
purchases  to  the  best  advantage,  will  be  remembered  with 
thankfulness  ever  afterwards. 

Treatment  of  children. — Another  class  with  which  a 
store  must  cultivate  the  friendliest  of  relations  is  the  chil- 
dren. Only  a  few  years  will  pass  before  they  become  the 
store's  customers.  If  your  store  is  in  business  then,  it  will 
need  their  trade,  but  the  foundations  of  that  trade  are  to 
be  laid  today.  It  is  wise  and  profitable  to  treat  the  chil- 
dren well,  answer  their  questions  kindly,  and  keep  them  most 
tactfully  from  doing  any  mischief.  Never  discourage  their 
coming.  Get  them  to  come,  and  to  see  what  you  have  in 
your  store.  Their  suggestions  at  home,  at  the  table  or 
elsewhere,  when  the  family  is  considering  new  purchases, 
will  often  be  followed. 

Another  class  to  reach. — One  other  class  that  it  will 
be  profitable  for  a  store  to  make  a  special  effort  to  reach 
is  made  up  of  the  members  of  the  community  whose  leisure 
is  abundant,  whose  principal  diversion  is  "visiting,"  and 
whose  faculty  for  telling  things  is  dominant.  These  per- 
sons can  do  a  store  immense  damage  by  aiding  in  the  circula- 
tion of  uncomplimentary  reports  of  its  merchandise,  prices, 
or  service.  Even  if  their  hearers  come  to  the  store  after- 
wards, they  cannot  help  being  in  somewhat  suspicious 
frames  of  mind,  and  may  as  a  result  construe  evil  where 
none  really  exists.  On  the  other  hand,  if  stories  become  cur- 
rent that  a  store's  merchandise  and  its  service  are  good, 
and  the  prices  right,  the  store  will  be  greatly  benefited.  Such 
advertising  is  better  than  printer's  ink  and  it  costs  nothing 
more  than  carefulness  in  service. 

Treatment  of  complaints. — Every  store  needs  to  have  a 
well  defined,  wisely  planned  policy  regarding  the  treatment 
of  complaints.  A  few  years  ago  it  was  customary  to 

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RETAIL    SELLING   AND    STORE    MANAGEMENT 

consider  a  sale  once  made  as  closed,  and  complaints  after- 
wards raised  were  not  attended  to.  Modern  merchandising 
under  competitive  conditions  has  forced  merchants  to  change 
their  policy  upon  this  point,  and  quite  rightly. 

An  article  is  never  fully  sold  until  it  is  consumed,  although 
this  idea  may  not  be  recognized  in  law.  Practice  has  shown 
that  a  store  serves  its  purpose  best  when  it  sells  goods  that 
give  satisfaction  in  the  using.  To  force  dissatisfied  cus- 
tomers to  adhere  to  "a  bargain"  is  bad  selling. 

Many  stores  have  made  great  growth  on  the  principle  of 
"Money  back  if  you  want  it,"  or  "Satisfaction  guaranteed." 
A  few  have  gone  still  further,  and  declare  it  their  policy 
to  "Remember  that  the  customer  is  always  right"  in  his  com- 
plaints. This  is  difficult  under  some  circumstances,  and 
the  stores  following  this  policy  are  imposed  upon  in  a  few 
cases,  but  in  the  long  run  this  policy  is  bound  to  win.  When 
a  dissatisfied  customer  comes  to  the  store  with  a  complaint 
that  the  goods  were  defective,  the  service  bad,  or  that  the 
salesman  did  not  tell  the  whole  truth,  the  best  policy  de- 
mands that  her  story  be  given  full  credence  at  once  by  the 
complaint  department,  or,  as  it  is  better  called,  the  adjust- 
ment department.  The  causes  of  the  complaint  are 
carefully  traced,  but  the  customer  is  satisfied  whether  the 
store  loses  or  not,  even  if  the  customer  is  in  the  wrong. 

One  merchant  shows  the  working  of  this  principle  by  say- 
ing that  a  man  entered  his  store  to  buy  some  yarn  for  his 

wife.     She  told  him  to  get  A yarn,  but  he  forgot  the 

name.  When  the  salesman  suggested  Spanish  yarn,  he 
replied  that  he  was  quite  sure  that  was  what  his  wife  had 
asked  for.  He  had  the  yarn  sent  to  his  home.  His  wife 
found  that  it  was  not  the  brand  she  ordered,  and  promptly 
concluded  that  the  error  was  caused  by  the  store.  She  took 
the  yarn  back,  and  berated  the  salesman  and  adjustment 
clerk  in  no  uncertain  terms.  These  people,  who  knew  the 
situation,  were  tactful  in  not  antagonizing  her  further  by 

198 


STORE   POLICY 

telling  her  the  facts  in  the  case.  They  simply  made  the 
exchange  and  apologized  for  the  error.  The  merchant 
thought  that  when  the  husband  heard  of  what  had  happened, 
he  would  be  so  grateful  that  the  store  could  count  on  him 
ever  afterward  as  a  friend  and  customer — and  he  was 
right. 

Treatment  of  angry  customers. — How  to  treat  angry 
customers  or  those  who  are  intentionally  rude  to  the  sales- 
people is  always  a  problem.  The  retailer  and  his  assist- 
ants draw  all  the  faultfinding  that  is  due  to  unsatisfactory 
goods,  because  they  are  nearer  to  the  public  than  the  whole- 
saler or  the  manufacturer.  This  is  as  it  should  be.  The 
people  depend  upon  the  merchant  for  the  goods.  They  pay 
him  the  price  he  asks  for  his  service.  As  an  expert,  it  is 
his  duty  to  buy  from  the  wholesaler  and  the  manufacturer 
only  such  goods  as  will  satisfy  his  customers.  When  he 
fails  to  do  this,  the  disapproval  of  his  customers  is  merited. 
But  there  are  some  people  who,  through  lack  of  training 
or  proper  sense  of  what  is  right,  will  enter  a  store  and 
upon  the  slightest  provocation  abuse  and  insult  the  store's 
employes.  The  salesman's  attitude  under  such  trying  cir- 
cumstances is  strongly  indicative  of  his  selling  ability.  No 
salesman  should  consider  rudeness  or  insults  as  personal 
matters.  The  customer  may  talk  to  you  personally,  but 
you  are  acting  for  the  firm,  and  what  is  said  is  really  abuse 
or  insult  for  the  firm.  When  the  salesman  can  assume 
this  attitude  he  has  taken  a  long  step  in  the  direction  of 
successful  selling.  If  anything  can  be  done  by  the  firm 
to  allay  the  customer's  anger,  it  should  be  done;  other- 
wise the  best  thing  for  the  salesman  to  do  is  to  keep  still, 
or  to  refer  the  matter  to  some  one  higher  in  authority 
than  he.  No  possible  good  can  come  from  "answering 
back."  If  the  rude  customer  cools  off,  it  may  be  entirely 
right  to  call  his  attention  to  his  error,  and  to  suggest  that 
an  apology  is  due.  If  this  is  done  properly  after  the  cus- 

199 


RETAIL    SELLING   AND    STORE    MANAGEMENT 

tomer  has  had  his  explosion,  it  is  likely  that  he  will  see 
his  mistake  and  be  willing  to  make  reparation,  but  not  so  if 
he  has  received  opposition  while  angry.  Insults  are  best 
met  by  dignity  and  silence. 

General  store  service. — There  are  a  number  of  things 
that  a  store  can  do  for  its  customers,  things  which  bring 
good  will  and  future  trade.  It  is  a  distinct  service  that 
is  more  or  less  appreciated  to  have  the  store  heated,  lighted, 
and  ventilated  so  as  to  have  it  comfortable  for  the  custom- 
ers. Drinking  water  and  toilet  conveniences,  waiting  and 
rest  rooms  will  draw  people  to  your  store,  and  sales  will 
result  from  their  visits.  The  elevators  are  service,  in  this 
sense,  to  customers.  Free  telephones  and  writing  tables  are 
other  profitable  accessories  of  a  store  if  properly  located 
in  the  building  and  well  advertised. 

Some  large  stores  have  found  it  profitable  to  conduct 
children's  nurseries  and  play  rooms,  where  the  children  may 
be  ''checked"  and  cared  for  while  the  mother  is  shopping 
in  the  store.  Limitations  must  be  placed  upon  this  sort  of 
service,  for  the  privilege  is  sometimes  abused.  In  the  first 
place,  it  has  been  found  necessary  to  make  a  rule  to  take 
no  children  in  the  nursery  under  six  months  of  age.  Sec- 
ondly, the  children  can  usually  be  left  in  the  nursery  for 
only  one  hour.  The  mother  must  leave  her  name  and  ad- 
dress with  the  persons  in  charge,  and  also  state  what  de- 
partments of  the  store  she  will  visit.  If  she  has  not  returned 
at  the  end  of  the  hour,  an  attendant  looks  her  up  and  re- 
ports that  the  time  has  expired.  For  older  children,  of 
ages  from  two  to  six,  the  play  room  has  proved  a  strong 
business  feature,  for  the  reason  that  articles  like  those  used 
by  the  children  in  their  play  are  often  sold  to  the  mother 
after  she  learns  how  interested  a  child  has  become  in  them. 
Lunch  rooms,  where  meals  or  lunches  are  served  at  moder- 
ate expense,  are  not  only  a  store  service  but  are  a  profitable 
investment  for  many  stores. 

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STORE   POLICY 

Special  store  service. — Whatever  else  may  be  included 
in  the  policy  of  a  store  towards  customers,  it  is  clear  that 
the  selling  should  be  as  expert  as  possible.  Salesmen  should 
know  their  goods  so  that  they  may  be  able  to  give  expert  in- 
formation and  advice  to  customers.  Some  stores  have  found 
it  exceedingly  profitable  to  have  their  salespeople  make  a 
point  of  instructing  the  customers  in  the  uses  of  the  goods 
they  purchase.  One  store,  at  least,  employs  a  so-called 
"Style  Adviser" —  a  person  whose  entire  time  is  at  the  dis- 
posal of  customers  who  desire  advice  upon  matters  of 
style  as  applicable  to  themselves.  This  service  is  given 
without  charge  and  without  placing  the  customer  under  any 
obligation  to  make  purchases.  The  salesmen  in  every  re- 
tail business  can  specialize  on  their  goods  and  build  up 
a  reputation  for  expert  ability  in  giving  good  advice,  no 
matter  what  their  line  may  be. 

Delivery  service. — All  customers  like  promptness.  The 
following  remark  is  common :  "I  like  to  trade  at  Blank's  be- 
cause I  get  waited  on  right  away,  and  because  I  know 
that  the  goods  I  order  will  be  delivered  in  time  for  me  to 
use  them  as  I  have  planned."  This  means  careful  attention 
to  orders,  systematic  inspection  and  wrapping,  and  prompt, 
careful  delivery.  In  these  matters,  the  policy  of  the  house 
is  made  very  plain  to  the  public.  A  package  well  wrapped, 
labeled  in  a  simple,  legible  manner,  and  delivered  by  busi- 
ness-like delivery  men  is  an  external  and  easily  understood 
evidence  of  the  way  in  which  the  store  wants  to  do  business. 
It  is  quite  likely  that  most  stores  do  not  look  after  their 
delivering  carefully  enough.  Often  the  delivery  man  is 
the  only  representative  of  the  store  that  the  householder 
meets.  If  he  is  lazy,  slovenly  in  appearance,  and  lacking 
in  promptness  and  tact,  the  impression  made  is  not  good. 
The  expert  deliveryman,  be  he  old  or  young,  is  quick,  cour- 
teous, well-kept,  full  of  business  vim,  careful,  and  pains- 
taking. His  greatest  anxiety  is  to  get  the  goods  to  the 

201 


RETAIL    SELLING    AND    STORE    MANAGEMENT 

customer's  home  in  the  best  possible  condition,  and  to  de- 
liver them  in  such  manner  as  to  suit  everybody.  His  mind 
needs  to  be  fixed  upon  every  detail  of  his  work,  or  he  will 
fail.  A  good  deliveryman  is  not  appreciated  as  much  as 
he  should  be  by  store  managers.  The  appearance  of  his 
horse  and  wagon  or  automobile  is  important.  No  merchant 
can  afford  to  lose  the  advertising  that  comes  through  having 
a  prosperous  looking  delivery  outfit. 


CHAPTER   XVI 
THE  COST  OF  SELLING 

Interest  in  cost  accounting. — Men  who  are  in  a  position 
to  know  retail  business  conditions  over  wide  areas,  fre- 
quently claim  that  only  a  few  storekeepers,  the  country 
over,  figure  the  cost  of  the  merchandise  sold  in  any  ade- 
quate way.  It  seems  to  be  usual  to  neglect,  or  to  omit,  such 
items  as  rent  when  the  building  is  owned,  interest  on  the 
investment,  salary  of  the  manager,  and  wages  of  members 
of  the  family  who  assist  in  the  store.  As  a  progressive  step 
in  the  campaign  for  efficiency,  there  is  coming  to  be  an 
insistent  demand  to  know  just  what  it  costs  in  every  de- 
partment to  sell  the  goods.  This  demand  is  not  only  from 
the  owners  and  managers  of  retail  stores,  but  the  same  de- 
mand also  comes  from  bankers,  credit  men,  and  even  the 
government.  Bankers  want  to  know  if  their  customers  are 
conducting  their  businesses  on  safe  lines.  Credit  men  base 
their  judgments  more  and  more  upon  evidences  of  efficient 
management  and  economical  methods.  The  government,  in 
theory,  should  tax  a  business  like  an  individual  in  proportion 
to  its  ability  to  pay,  but  ability  to  pay  cannot  be  determined 
without  standards  of  the  cost  of  running  a  business,  and 
standards  of  what  a  business  can  do. 

A  bankers'  association  submitted  to  the  National  Credit 
Men's  Association  a  set  of  questions  by  means  of  which 
they  hoped  to  get  information  concerning  the  majority  of 

203 


RETAIL    SELLING    AND    STORE    MANAGEMENT 

ordinary  business  establishments.     The  questions  were  as 
follows : 

1.  What  is  a  safe  percentage  for  gross  profit? 

2.  What  is  a  fair  average  percentage  for  expense  of  doing 

business? 

3.  What  is  a  fair  rate  of  depreciation? 

The  National  Credit  Men's  Association  had  no  data  upon 
which  to  base  an  authoritative  reply.  There  is  certainly  need 
for  careful  study  of  these  matters. 

What  is  profit. — When  retail  merchants  speak  of  profit, 
they  usually  mean  the  difference  between  the  cost  of  the 
goods  and  the  selling  price.  This  definition  has  been  recog- 
nized by  a  Wisconsin  state  court.  However,  no  definition 
could  be  less  exact  unless  profit  is  re-defined  so  as  to  include 
a  lot  of  things  that  go  by  other  names.  For  example,  a 
manufacturer  does  not  mean  by  profit  the  difference  between 
the  cost  of  the  raw  material  which  he  buys  and  the  amount 
received  for  his  finished  goods.  Everybody  recognizes  that 
in  a  factory  there  must  be  taken  out  of  this  difference  large 
sums  for  the  wages  of  labor,  other  sums  for  the  purchase 
and  upkeep  of  machinery,  and  other  sums  for  rent,  transpor- 
tation, selling  expenses,  and  so  on.  The  case  is  not  differ- 
ent in  the  retail  store.  There  is  the  labor — salesmen,  de- 
livery men,  bookkeepers,  and  other  employes — which  must 
be  paid.  There  is  the  store  and  its  fixtures  which  must 
be  paid  for  and  kept  in  good  repair ;  and  there  are  the  gen- 
eral expenses  similar  to  those  of  the  factory.  The  true 
profit  of  a  store  is  what  remains  after  all  of  these  expenses 
have  been  paid. 

Economic  profit. — Political  economists  show  that  there 
are  five  different  kinds  of  income — wages  or  salaries  for 
labor,  rent  for  land,  interest  for  capital,  insurance  for  risk, 
and  profit  as  a  return  for  special  skill  in  management. 
Profit  is  what  is  left  over  after  every  expense  has  been  paid. 
To  obviate  the  difficulty  in  the  common  use  of  the  term, 

204 


THE   COST   OF   SELLING 

business  men  make  use  of  the  words  "gross  profit"  and  "net 
profit."  Gross  profit,  according  to  common  usage,  is  the 
name  for  the  total  difference  between  the  original  cost  of  the 
goods  and  the  selling  price.  Net  profit  represents  real 
economic  profit — what  is  left  of  this  difference  after  all  ex- 
penses have  been  paid. 

How  profits  are  computed. — Accompanying  the  variety 
of  definitions  and  much  misunderstanding  of  the  term 
profit,  there  is  equal  dissimilarity  in  methods  of  computing 
profit.  If  the  stock  of  a  store  could  be  cleaned  out  entirely 
at  regular  intervals,  it  would  be  easy  to  find  the  gross  profit 
by  simply  subtracting  the  cost  price  from  the  selling  price 
of  the  goods.  But  as  stocks  are  rarely  sold  out  in  a  going 
concern,  account  must  be  taken  of  what  is  on  hand  when 
the  profits  are  computed.  In  other  words,  an  inventory 
must  be  taken.  The  total  purchases  less  the  goods  on  hand 
must  equal  the  goods  sold,  or,  putting  the  same  thing  in 
money  values,  the  total  purchase  cost,  less  the  value  of  the 
goods  on  hand,  equals  the  cost  of  the  goods  sold.  Subtract- 
ing this  amount  from  the  selling  price  will  give  the  gross 
profit.  Expressed  in  the  form  of  an  equation,  the  gross 
profit  becomes: 

Sales —  (Purchases  —  Inventory)  =  Gross  Profit 

But  in  bookkeeping  it  seems  to  be  easier  to  vary  the  mathe- 
matical operation  a  little ;  the  usual  method  of  finding  gross 
profit  is  to  add  the  inventory  to  the  sales  and  then  from  this 
total  to  subtract  the  purchase  cost.  The  result  is  exactly 
the  same  if  either  method  is  followed.  The  equation  show- 
ing the  second  method  is  as  follows : 

Sales  +  Inventory  —  Purchases  =  Gross  Profit 

How  to  take  the  inventory. — But  how  shall  the  inventory 
be  taken?  This  is  a  question  that  has  been  much  disputed 
by  practical  merchants.  Some  merchants  list  goods  at  billed 
prices;  others  at  billed  prices  plus  freight;  others  include 

205 


RETAIL    SELLING   AND    STORE    MANAGEMENT 

cartage,  while  still  others  include  storage  and  buying  ex- 
pense. Some  merchants  inventory  at  net  costs  when  dis- 
counts are  offered  and  taken,  and  others  inventory  at  net 
costs  whether  the  discounts  are  taken  or  not.  Some  mer- 
chants inventory  goods  on  some  of  the  cost  bases  suggested 
above,  but  with  deductions  for  depreciation  in  value  of 
goods.  Some  inventory  at  present  cost  of  replacement. 
Not  a  few  inventory  at  selling  prices;  that  is,  at  what  the 
goods  will  probably  bring. 

It  is  evident  that  each  of  these  methods  would  bring  a 
different  result  in  the  gross  profit  shown.  Which  is  the 
right  way?  Anyone  of  several  of  the  methods  suggested 
would  be  correct  if  the  merchant  using  it  fully  understood 
what  it  stood  for,  and  if  its  limitations  were  properly  con- 
sidered. For  example,  inventorying  at  the  selling  values  of 
the  goods  has  a  most  useful  purpose,  but  not  in  finding  the 
gross  profits.  Such  an  inventory  should  be  taken  occa- 
sionally by  every  store.  But  most  merchants  agree  that  an 
inventory  at  cost  is  the  only  proper  one  for  accounting  pur- 
poses. 

The  main  difficulty  seems  to  hinge  upon  the  meaning  of 
the  term  "cost."  Several- meanings  can  be  given  to  the  word, 
and  each  might  be  sound  from  the  standpoint  of  the  one  who 
gives  it. 

Merchants  sometimes  speak  of  the  cost  of  the  goods  and 
of  the  cost  of  doing  business.  This  is  likely  to  be  confusing. 
It  is  better  to  speak  of  the  cost  of  the  goods  and  of  the 
expense  of  doing  business.  In  order  to  distinguish  defi- 
nitely between  these  two  things,  let  us  examine  for  a  min- 
ute the  factors  that  enter  into  the  price  at  which  goods  are 
sold.  First,  there  is  the  amount  of  money  spent  to  bring 
the  goods  into,  or  under  the  control  of,  the  store.  This 
should  include  the  actual  price  at  which  the  goods  are 
bought,  together  with  the  charges  incurred  to  put  the  goods 
on  the  shelves  of  the  store  or  in  any  other  place  where  it 

206 


THE   COST   OF    SELLING 

is  necessary  for  them  to  be  in  order  to  be  sold.  Second, 
there  is  the  amount  of  money  spent  for  the  service  and 
labor  within  the  store — for  the  storekeeping,  in  other  words. 
And  lastly  there  is  the  element  of  supply  and  demand — the 
price  that  customers  will  be  willing  to  pay  for  the  goods. 
All  of  these  three  things  enter  into  the  price  at  which  the 
goods  must  be  sold.  The  first  is  called  cost,  the  second 
expense,  and  the  last  might  be  called  the  market  value. 

These  factors  in  price  have  been  brought  out  here  because 
they  serve  to  indicate  exactly  what  cost  is.  It  will  be  noted 
that  the  characteristic  of  cost  is  that  it  is  outside  of  the 
control  of  the  merchant,  except  as  he  may  be  able  to  get 
better  prices  by  better  bargaining.  His  store  expenses,  how- 
ever, are  entirely  within  his  control.  He  can  have  almost 
any  location  for  which  he  is  willing  to  pay ;  he  can  have  any 
fixtures  he  wishes;  he  can  employ  good  or  poor  salespeo- 
ple as  he  sees  fit;  and  he  can  in  similar  manner  control  all 
the  items  of  his  storekeeping  expense.  The  cost  of  goods, 
on  the  other  hand,  is  largely  fixed  for  him  by  the  people 
from  whom  the  goods  are  bought,  and  it  is  this  characteristic 
that  distinguishes  cost  from  expense.  In  general,  then, 
from  the  merchant's  standpoint,  cost  includes  net  cost  of 
goods  plus  all  charges,  such  as  freight  and  drayage,  neces- 
sary to  lay  the  goods  down  at  his  place  of  business.  All 
outlay  up  to  and  including  this  point  makes  up  the  cost  of 
the  goods  to  him.  All  outlay  after  this  point  is  storekeep- 
ing expense.  The  inventory  should,  therefore,  be  taken  at 
the  net,  laid  down  cost  prices. 

In  this  statement  the  word  net  does  not  mean  that  the 
goods  should  be  listed  at  the  prices  paid  after  deducting  the 
cash  discount  in  those  cases  in  which  cash  discounts  have 
been  offered  and  taken.  It  means  that  the  goods  should  be 
•  listed  at  the  list  prices  less  the  ordinary  trade  discounts,  but 
not  less  the  cash  discounts.  Good  accounting  practice  does 
not  recognize  cash  discounts  as  a  real  reduction  in  the  cost 

207 


RETAIL   SELLING   AND    STORE   MANAGEMENT 

of  the  goods.  Cash  discounts  are  usually  credited  to  an 
income  account.  This  is  reasonable,  because  the  cash  dis- 
count is  something  over  which  the  merchant  has  control; 
he  may,  or  he  may  not,  take  advantage  of  it,  as  he  sees  fit. 
As  something  within  his  control,  then,  it  is  not  a  factor 
to  be  taken  into  consideration  in  connection  with  the  cost 
of  the  goods. 

There  is  one  exception  to  the  rule  that  the  inventory 
should  be  taken  at  net,  laid  down  prices.  It  is  clear  that  no 
useful  purpose  can  be  served  by  keeping  to  the  cost  price  of 
an  article  in  making  out  the  inventory  if  the  selling  value 
has  gone  down  below  that  cost  price.  The  rule  should 
in  this  case  read :  Inventory  the  goods  at  net  cost  laid  down 
in  the  store,  if  that  amount  is  below  the  selling  value,  but  at 
selling  value  if  the  latter  is  below  cost. 

The  turn-over. — In  a  mercantile  business  where  the  prof- 
its come  from  buying  and  selling  goods,  it  is  not  enough  to 
know  what  the  gross  profits  are  for  a  given  period  of  time. 
One  does  not  learn  very  much  about  the  condition  of  a 
business  to  note  in  the  bookkeeper's  statement  that  the 
gross  profits  for  the  past  year  were  40%  of  the  sales. 
This  does  not  tell  whether  the  stock  was  sold  out  once  or 
ten  times  during  the  period.  It  shows  nothing  of  the  rapid- 
ity with  which  goods  must  have  been  transferred  by  the 
store  in  order  to  gain  this  40%.  Suppose  that  the  merchant 
should  discover  that  his  gross  profit  is  too  small  by  5%  to 
meet  the  expenses  of  the  business  and  to  leave  him  a  fair  net 
profit.  How  should  he  mark  and  sell  his  goods  so  as  to  get 
45%  gross  profit?  Obviously  if  he  sells  out  the  value  of 
his  stock  once  in  a  year,  the  adding  of  something  more  than 
5%  to  the  present  selling  price  of  each  article  will  give  him 
the  desired  gross  profit.  But  if  he  sells  out  the  value  of  his 
stock  several  times  during  the  year,  it  will  not  be  necessary 
to  add  5%  of  the  selling  price  of  each  article;  for  to  do  so 
would  give  him  a  much  larger  gross  profit  than  the  desired 

208 


THE   COST   OF   SELLING 

45%  if  he  succeeded  in  selling  at  such  an  advance.  The 
conditions  of  the  ordinary  market  are  such,  however,  that 
the  chances  are  he  could  not  sell  his  goods  at  all  if  he  added 
5%  in  such  an  arbitrary  manner  to  the  ordinary  selling 
prices.  In  order  to  know  how  much  to  add  to  the  selling 
price  of  each  article  to  gain  a  certain  gross  profit,  he  must 
first  know  what  his  annual  turn-over  is;  that  is,  he  must 
know  how  many  times  he  sells  out  completely  the  value  of 
his  stock  in  a  year,  or  during  any  given  period.  For  ex- 
ample, if  his  stock  turns  five  times,  the  extra  5%  could  be 
earned  by  adding  only  a  little  over  I  %  to  the  present  selling 
price  of  each  article. 

How  is  turn-over  determined? — There  is  no  agreement 
as  to  the  method  of  finding  the  number  of  stock  turns. 
Many  think  they  are  finding  it  when  they  divide  the  total 
sales  by  the  inventory  amount  at  the  beginning  of  the  year. 
Others  divide  by  the  inventory  at  the  end  of  the  year. 
The  difference  may  be  great,  indeed,  between  these  two  re- 
sults, and  there  are  at  least  four  other  methods  in  actual 
practice.  One  is  to  divide  the  total  sales  by  the  average 
value  of  stock  on  hand,  taking  an  average  of  all  months  in  the 
year.  Another  is  to  take  the  approximate  cost  of  the  goods 
sold  and  to  divide  that  by  the  cost  of  the  average  amount 
of  stock  carried;  the  average  is  found  as  in  the  preceding 
case.  Another  method  is  to  divide  the  total  sales  by  the 
probable  selling  value  of  the  goods  on  hand  at  the  begin- 
ning of  the  year ;  and  the  confusion  in  methods  is  made  com- 
plete by  still  another  method  in  which  the  total  sales  are 
divided  by  the  selling  value  of  the  goods  on  hand  at  the  last 
inventory.  The  true  turn-over  can  be  found  only  by  divid- 
ing total  sales  by  the  average  selling  value  of  the  stock  on 
hand;  or  by  dividing  the  approximate  cost  of  all  goods 
sold  by  the  cost  of  the  average  stock  kept  on  hand.  Other 
methods  will  serve  the  purpose  in  some  businesses,  and  will 
be  nearly  right  in  some  cases ;  but  the  opportunity  for  great 

209 


RETAIL    SELLING   AND    STORE    MANAGEMENT 

error  is  always  present  in  them.  With  the  usual  accounts 
kept  in  most  stores,  there  is  an  element  of  estimation  in 
both  of  the  standard  ways.  But  this  element  can  be  con- 
siderably reduced  by  expending  a  little  more  well  directed 
labor  on  the  keeping  of  the  accounts.  It  has  paid  successful 
stores  to  get  the  exact  figures  representing  the  annual  and 
even  the  semi-annual  turn-over. 

The  expenses  of  selling. — With  settled  methods  of  find- 
ing inventory  and  turn-over,  and,  therefore,  the  method  of 
computing  gross  profits  on  the  whole  stock  and  on  single 
articles,  there  remains  to  be  determined  the  expenses  of  the 
business  which  must  be  paid  out  of  these  gross  profits  after 
the  cost  of  the  goods  has  been  paid.  The  following  table 
presents  a  detailed  list  of  the  ordinary  expenses  of  a  retail 
business.  This  list  should  be  studied  carefully. 

EXPENSES  OF  DOING  A  RETAIL  BUSINESS 

I.    Buying  expenses: 

1.  Salaries  and  wages  of  buying  force. 

2.  Other  buying  expenses. 
II.     Selling  expenses: 

1.  Salaries  and  wages  of  sales  force. 

2.  Extra  selling. 

3.  Advertising. 

a.  Newspapers. 

b.  Circulars. 

c.  Other,  including  displays. 

4.  Miscellaneous  selling  expenses. 
III.     Delivery  expenses: 

1.  Salaries  and  wages  of  delivery  force. 

2.  Other  delivery  expenses. 

IV.     Management  expenses  and  fixed  charges: 

1.  Rent. 

2.  Heat. 

210 


THE   COST   OF    SELLING 


3- 

4.  Power. 

5.  Repairs  and  renewals  of  equipment. 

6.  Depreciation  of  equipment. 

7.  Insurance  on  stock  and  equipment. 

8.  Taxes  and  licenses. 

9.  Management  and  office  salaries. 

10.  Office  supplies  and  expenses. 

11.  Miscellaneous  management  expenses. 
V.     Losses  from  bad  debts. 

As  each  item  is  read,  consider  it  in  connection  with  some 
store  with  which  you  are  familiar,  and  determine  whether 
such  an  expense  is  incurred  in  the  store  you  have  in  mind, 
how  the  amount  is  expended,  what  the  amount  is,  and  what 
returns  are  obtained  from  the  expense. 

The  National  Association  of  Credit  Men  have  recom- 
mended the  following  rules  for  figuring  costs  and  profits. 

1.  Charge  interest  on  the  net  amount  of  your  total 
investment  at  the  beginning  of  your  business 
year,  exclusive  of  real  estate. 

2.  Charge  rental  on  all  real  estate  or  buildings 

owned  by  you  and  used  in  your  business,  at  a 
rate  equal  to  that  which  you  would  receive  if 
renting  or  leasing  the  property  to  others. 

3.  Charge  in  addition  to  what  you  pay  for  hired 

help  an  amount  equal  to  what  your  services 
would  be  worth  to  others;  also  treat  in  like 
manner  the  services  of  any  member  of  your 
family  employed  in  the  business  not  on  the 
regular  pay  roll. 

4.  Charge  depreciation  on  all  goods  carried  over 

on  which  you  may  have  to  make  a  less  price 
because  of  change  in  style,  because  of  dam- 
age, or  for  any  other  cause. 

211 


RETAIL    SELLING   AND    STORE    MANAGEMENT 

5.  Charge  depreciation  on  buildings,  tools,  fixtures 

or  anything  else  suffering  from  age  or  wear 
and  tear. 

6.  Charge  all  fixed  expenses,  such  as  taxes,  insur- 

ance, water,  lights,  fuel,  etc. 

7.  Charge   all  amounts   donated   or   subscriptions 

paid. 

8.  Charge  all  incidental  expenses,  such  as  drayage, 

postage,  office  supplies,  livery  or  expenses  of 
horses  and  wagons,  telegrams  and  telephones, 
advertising,  canvassing,  etc. 

9.  Charge    losses    of    every    character,    including 

goods  stolen  or  sent  out  and  not  charged,  al- 
lowance made  to  customers,  bad  debts,  etc. 

10.  Charge  collection  expense. 

1 1 .  Charge  any  other  expense  not  enumerated  above. 

12.  When  you  have  ascertained  what  the  sum  of  all 

the  foregoing  items  amounts  to,  prove  it  by 
your  books,  and  you  will  have  your  total  ex- 
pense for  the  year ;  then  divide  this  figure  by 
the  total  of  your  sales,  and  it  will  show  you 
the  per  cent,  which  it  has  cost  you  to  do  busi- 
ness. 

13.  Take  this  per  cent,  and  deduct  it  from  the  price 

of  any  article  you  have  sold,  then  subtract 
from  the  remainder  what  it  cost  you  (invoice 
price  and  freight),  and  the  result  will  show 
your  net  profit  or  loss  on  the  article. 

14.  Go  over  the  selling  prices  of  the  various  articles 

you  handle  and  see  where  you  stand  as  to  prof- 
its; then  get  busy  in  putting  your  selling  fig- 
ures on  a  profitable  basis,  and  talk  it  over  with 
your  competitor  as  well. 

212 


THE   COST   OF   SELLING 

How  much  should  expense  be? — What  expense  in  a  retail 
store  should  amount  to  is  an  important  question,  but  not 
one  that  can  be  definitely  answered,  for  the  reason  that 
there  have  never  been  complete  studies  made  of  the  mat- 
ter. 

Expenses  will  differ,  no  doubt,  because  of  local  conditions, 
the  size  of  the  city,  the  character  of  the  trade,  and  other 
matters.  According  to  the  estimates  that  are  available,  based 
upon  the  experience  of  successful  stores,  it  costs  from 
14%  to  20%  of  the  total  sales  to  run  a  grocery  business, 
from  1 6%  to  25%  of  the  total  sales  to  run  a  boot  and  shoe 
store,  from  24%  to  35%  to  run  a  jewelry  store,  from  14% 
to  18%  to  run  a  hardware  store,  from  15%  to  20%  to  run 
an  agricultural  implement  business,  and  from  18%  to  25% 
to  run  a  drygoods  store.  But  these  figures  are  really  of 
small  value,  for  the  reason  that  the  margin  between  the 
minimum  and  maximum  figures  is  sufficient  to  make  or 
break  any  business.  If  one  should  take  the  minimum,  how- 
ever, as  the  average  for  ordinary  small  towns  of  less  than 
5,000  population,  not  within  fifty  miles  of  some  great  mar- 
keting center,  and  the  maximum  as  the  average  for  the 
large  city  store  where  the  service  demanded,  the  rent,  and 
the  advertising  cost  are  high,  he  would  probably  not  be  far 
from  right. 

It  is  notable,  according  to  Mr.  H.  G.  Selfridge,  an  Amer- 
ican merchant  now  running  an  immense  store  in  London, 
England,  that  the  business  expense  amounts  to  about  5% 
less  there  than  in  this  country. 

Nothing  but  approximations  can  be  given,  for  the  facts 
are  not  to  be  had. 

Mark-downs. — After  a  merchant  has  determined  what  his 
percentages  of  expense  are  likely  to  be  and  what  profit  he 
would  like  to  get,  he  must  realize  that  he  has  the  element 
of  depreciation  to  deal  with.  If  he  marks  his  goods  at  a 
certain  price,  he  knows  very  well  that  the  chances  are  many 

213 


RETAIL    SELLING   AND    STORE    MANAGEMENT 

to  one  that  he  cannot  clean  out  the  entire  lot  at  the  marked 
price.  What  of  the  rest?  They  must  be  sold  at  lower 
prices.  If  they  are  seasonable  goods,  they  must  be  disposed 
of  at  any  figure  that  they  will  bring.  Here  a  part  of  the 
expected  profit  will  be  lost;  possibly  a  loss  will  be  incurred 
due  to  selling  below  the  costs  of  the  goods.  In  order  to 
insure  the  profit  and  expenses  as  originally  planned,  it  will 
be  necessary  to  add  to  the  mark-up  such  a  percentage  as,  in 
the  experience  of  the  store,  will  cover  possible  reductions 
or  mark-downs  at  the  end  of  the  season.  The  amount  of 
this  mark-down  varies  considerably  according  to  the  com- 
munity, the  quality  of  the  buying,  and  the  character  of  the 
trade.  A  certain  drygoods  store  asserts  that  it  must 
allow  5  per  cent,  for  mark-downs.  Another  claims  this 
is  too  high.  No  doubt,  in  other  places,  the  amount  is  too 
low. 

Refer  to  Plate  VI  and  study  the  diagram  there  presented. 
The  plate  presents  merely  an  illustration,  and  is  applicable 
in  its  present  form  to  but  few  articles.  The  principle  illus- 
trated by  the  diagram  is  the  same,  however,  for  all  goods 
sold  at  retail. 

Compute  profits  and  expenses  on  sales. — We  have  re- 
peatedly spoken  of  percentages  of  expense  and  of  profit. 
In  most  cases,  we  have  indicated  that  these  were  percentages 
of  the  selling  price  or  of  total  sales,  and  not  of  costs.  This 
is  puzzling  to  many.  The  matter  is  quite  simple,  however, 
if  viewed  from  the  standpoint  of  the  balance  sheet  made  out 
at  the  end  of  the  year.  It  is  from  the  total  sales  that  all 
expenses  for  the  year  must  be  paid,  and  it  is  from  the  total 
sales  that  the  profits  are  derived.  This  being  the  case,  the 
amount  of  sales  should  be  taken  as  the  base  of  computing 
both  expenses  and  profits. 

Some  merchants  dispute  the  necessity  of  computing  prof- 
its on  the  basis  of  sales.  There  has  been  a  great  deal  of  recent 
discussion  upon  this  point — much  of  it  due  to  misunderstand- 

214 


h 


6pP 


3^ 

ns 


Cost  of  goods 
plus  freight 


|$    Buying  expense 

*V<\ 

(M    Selling  expense 

[ftj    Advertising 

jjjP  Store  expense 

frl 

fy    Rent,  Taxes.  Insurance 

y 

^\ 

ifyj    General  expense 

fcy 

f\ 

hi    Stealing  and  Bad  Debts 

U 

f\ 

PM      MafK-aowns 


8 


I 

5!    F 
K  § 


RETAIL    SELLING   AND    STORE    MANAGEMENT 

ing.  There  should  be  little  ground  for  argument.  If  one 
means  by  profit  the  return  upon  the  investment  in  the  goods, 
then  the  base  upon  which  the  profit  should  be  computed  is  the 
amount  of  money  paid  for  the  goods.  But  in  retail  selling, 
our  problem  is  more  than  merely  investment.  The  profits 
are  more,  or  should  be  more,  than  a  mere  return  for  the 
amount  of  capital  invested.  In  fact  the  simple  investment 
of  money  in  goods,  no  matter  how  wisely  done,  would  yield 
nothing.  Other  investments  besides  those  for  goods  must 
be  made  before  there  can  be  any  return.  Retail  selling  in- 
volves investment  in  goods,  labor,  management,  risk,  and 
other  variable  elements.  The  results  from  all  of  these  items 
are  measured  by  the  sales  of  the  store.  Each  of  these  items 
is  a  factor  in  producing  the  total  sales.  Each  costs  some- 
thing, or  is  worth  something.  We  may,  say  that  the  total 
sales  are  made  up  of  sums  of  money  due  to  each  of  these 
factors.  The  cost  of  the  goods  is  but  a  single  item.  There 
is  no  more  logical  reason  for  using  cost  of  goods  as  the 
base  on  which  to  figure  profits  than  there  is  for  using  the 
cost  of  the  labor,  the  cost  of  the  rent,  or  any  other  single 
item  that  enters  into  store  costs,  except  that  the  cost  of 
the  goods  is  considered  as  the  starting  point  of  store 
expense. 

When  we  say  that  the  expenses  of  a  business  amount  to 
one-tenth  or  one-fifth  of  the  total  sales,  we  are  stating  a 
fact  in  the  way  that  most  people  want  it  stated,  in  a  way 
that  is  current  in  other  kinds  of  business  as  well  as  in  retail- 
ing. For  example,  a  manufacturer  does  not  base  his  ex- 
penses upon  his  cost  of  materials.  It  is  the  value  of  the 
output,  the  sales,  that  he  considers  as  his  base.  The  farmer 
does  not  figure  his  expenses  upon  the  cost  of  the  seed  that 
he  sows;  he  computes  the  percentage  of  expenses  on  the 
basis  of  his  total  income  from  the  crop.  True,  there  are 
differences  in  manufacturing  and  farming,  and  retailing,  but 
the  underlying  principle  of  figuring  profits  holds  for  all. 

216 


THE   COST    OF    SELLING 

The  retailer's  service  with  wholesale  lots  of  goods  is  in 
principle  the  same  as  the  manufacturer's  service  with  re- 
spect to  raw  materials  or  the  farmer's  service  with  respect 
to  seed  and  natural  forces.  All  three  take  goods  and  ma- 
terials and  make  them  available  for  other  classes  of  people. 

Marking  the  prices. — The  main  difficulty  that  arises  out 
of  the  principle  of  computing  expenses  on  the  basis  of  sell- 
ing price  rather  than  on  cost,  seems  to  arise  when  the  mer- 
chant marks  his  goods.  Recent  investigations  show  that 
many  merchants  have  marked  their  goods  at  prices  which 
they  thought  were  going  to  yield  good  profits,  when,  in  real- 
ity the  final  results  showed  a  loss.  How  this  happens  may 
be  made  clear  by  illustration. 

The  right  way. — Suppose  that  a  merchant  learns  that  his 
expense  of  doing  business  amounts  to  22%  of  his  sales.  If 
he  buys  an  article  at  75  cents,  at  what  price  shall  he  mark 
it  to  be  sold  if  he  desires  to  net  a  profit  of  10%  ? 

The  selling  price  must  be  considered  as  the  base,  but  the 
selling  price  is  made  up  of  the  cost,  expense,  and  net  profit. 
These  items  and  their  relation  to  the  whole  may  be  shown 
as  follows: 

Selling  Price 


Cost 

Expense 

Net 
profit 

In  the  example  above  the  figures  are  as  follows : 
Selling  Price  100% 


Net 

Cost  75  Cents 

Expense  22% 

profit 

10% 

217 


RETAIL    SELLING   AND    STORE    MANAGEMENT 

By  adding  22%  and  10%  together  one  gets  32%.  Sub- 
tracting 32%  from  100%  leaves  68%,  which  represents  the 
cost  of  the  goods. 

Cost 68% 

Expense 22% 

Profit 10% 

Selling  price   100% 

The  cost  is  68%  of  the  total  selling  price.  In  money  the 
cost  is  75  cents.  Then  75  cents  is  68%  of  the  total  or  sell- 
ing price. 

68%  of  selling  price=$75 

i%  of  selling  price=$75-f-68  or  $.011 
100%  of  selling  price=  loo  X  $.011  or$i.io 

Therefore  the  selling  price  should  be  $1.10. 

The  wrong  way. — Now  a  great  many  merchants  would 
have  made  the  mistake  of  trying  to  solve  the  problem  in  the 
following  way: 

The  cost  is  $.75,  which  is  to  be  considered  as  the  base, 
and  therefore  is  to  be  represented  by  100%. 

22%=expense 
io%=profit  desired 


32%=  what  must  be  added  to  cost  to  make  the  selling 
price.  Since  the  cost  is  incorrectly  considered  to  be  the  base, 
the  percentage  of  gross  profit  is  computed  on  this  amount. 

32%  of  $75=$75  X  .32=$.24 

24  cents,  then,  is  the  amount  that  must  be  added  to  the  cost 
to  make  the  selling  price,  according  to  this  incorrect  method 
of  figuring: 

$75  ^  $.24  =  $.99  selling  price 
218 


THE   COST   OF    SELLING 

Loss  caused  by  the  wrong  method. — It  will  be  noted  that 
there  is  a  difference  of  eleven  cents  in  the  selling  prices  as 
a  result  of  the  two  methods  of  computation.  The  merchant 
loses  all  the  profit,  and  sells  the  article  practically  at  cost 
plus  expense  of  doing  business  when  he  adopts  the  lat- 
ter method.  Not  only  that,  but  he  fools  himself.  He 
thinks  that  he  will  get  a  profit  of  10%,  but  this  never 
materializes. 

Another  example. — Let  us  take  another  example  showing 
the  importance  of  this  matter  to  the  retail  store  manager. 
Let  us  assume  that  he  has  under  consideration  a  proposal  to 
handle  an  article  costing  him,  laid  down  in  the  store,  $1.25, 
and  which  will  sell  for  $1.50.  Let  us  assume  in  this 
case  that  the  selling  expense  runs  about  iS%  of  the  sales. 
Can  the  merchant  afford  to  handle  the  article  ? 

There  would  be  a  gross  profit  of  25  cents  on  each  article 
sold.  Would  this  be  enough  to  pay  the  expenses  and  yield 
some  net  profit  besides  ? 

Some  merchants  would  reply  affirmatively,  because  they 
would  make  the  mistake  of  computing  the  profit  in  the 
wrong  way.  They  would  say:  "25  cents  is  J  or  20%  of 
the  cost,  $1.25.  My  selling  expense  amounts  to  18%.  20% 
—  18%  =2%  profit.  2%  of  $1.25  =  $.02y2,  the  amount 
of  net  profit  on  each  sale." 

What  is  wrong  about  this  ?  Simply  this :  the  expense  of 
selling,  1 8%,  was  computed  on  the  sales,  and  the  gross  profit, 
20%,  was  computed  as  a  part  of  the  cost — two  entirely 
different  bases.  In  attempting  to  compare  amounts  rep- 
resenting two  entirely  different  sorts  of  things,  an  error 
decidedly  dangerous  to  the  business  is  sure  to  result. 

Let  us  see  what  the  result  will  be  if  we  reduce  the  25 
cents  in  money  profit  to  a  percentage  of  the  proper  base,  the 
selling  price,  which  is  $1.50. 

100%  of  selling  price  =  $1.50,  the  selling  price 
i%  of  selling  price  =  $.015  ($1.50  -v-  100) 

219 


RETAIL    SELLING    AND    STORE    MANAGEMENT 

If  $.015  (one  and  one-half  cents)  is  i%  of  the  selling 
price,  what  per  cent,  of  the  selling  price  is  $.25,  the  gross 
profit?  The  answer  is  found  by  dividing  .25  by  .015.  The 
quotient  is  i6|.  Therefore  the  gross  profit,  25  cents,  is 
i6§%  of  the  selling  price,  $1.50. 

In  the  problem  under  consideration  we  assume  the  cost 
of  doing  business  to  be  18%  of  the  total  sales.  Then,  since 
the  gross  profit  is  only  i6|%  of  the  sales  price,  there  would 
be  an  actual  loss  on  every  article  which  cost  $1.25  laid  down 
in  the  store  and  which  sold  for  $1.50;  and  the  percentage 
of  this  loss  would  be  the  difference  between  18%  and  i6|%. 
This  difference  is  i  J%,  figured  on  sales.  The  money  loss  on 
each  sale,  then,  would  be  i-J%  of  $1.50,  or  2  cents.  It  is 
clear,  therefore,  that  a  merchant  cannot  afford  to  handle  an 
article  costing  $1.25  and  selling  for  $1.50,  unless  his  selling 
expense  is  less  than  i6f%. 

Compute  profits  and  expenses  on  the  same  base. — The 
essential  thing  is  that  profits  and  expenses  must  be  com- 
puted upon  the  same  base.  If  a  merchant  would  take  the 
trouble  to  figure  out  what  his  expenses  of  doing  business 
are  as  a  percentage  of  the  cost  of  the  goods  that  he  has  sold, 
then  it  would  be  permissible  to  figure  profits  upon  costs  also. 
But  if  expenses  are  to  be  considered  in  relation  to  the  sales, 
as  they  usually  are,  then  all  computations  involving  gross  or 
net  profits  must  also  be  figured  on  sales.  The  general  adop- 
tion of  this  latter  plan  would  put  merchandise  accounting  in 
accord  with  the  methods  of  other  businesses. 

For  the  reason  that  considerable  time  is  required  to  find 
what  percentage  of  the  cost  it  takes  to  equal  certain  per- 
centages on  sales,  Plate  VII  will  assist  the  merchant  in  mak- 
ing the  proper  charges  for  his  goods. 

Retail  profits. — The  amount  of  net  or  true  profit  that 
well  managed  successful  grocery  businesses  earn  varies  from 
2%  to  4%  of  the  sales  per  turn-over;  from  3%  to  6%  in 
boots  and  shoes ;  and  about  the  same  for  drygoods.  Many 

220 


THE   COST   OF    SELLING 


CHART  SHOWING  RELATIVE  VALUE  OF  PER  CENT.  AT  COST  AND  PER 
CENT.  AT  SELLING 


At 
cost 

22% 

At 
selling 

18  o% 

At 
cost 

48% 

At 
selling 

32.4% 

At 
cost 

74%. 

At 
selling 

42.5% 

18  7 

4O 

32   9 

75 

42.9 

10  4 

SO 

.   33i 

76     . 

43.2 

51 

33  8 

77 

43  .  5 

26  ::: 

20  6 

52 

•  -34-2 

78      . 

43.8 

21  3 

S3 

34  o 

79 

44-1 

28  ::; 

21  9 

54     .  .    .  . 

.    .  .  .35.1 

80      . 

44.4 

29 

22    5 

ee 

35-5 

8l      . 

JJ.  8 

30 

23  i 

56  ::::: 

35-9 

82      . 

45.1 

31 

23  7 

57 

36.3 

83      . 

45-4 

58 

36  7 

84 

45  .  7 

33i   '" 

25  o 

59 

.    .    .37.1 

85      . 

46  .  o 

60 

37  5 

86     . 

...46.3 

35 

25  9 

61 

.    .  .  .37-9 

87      . 

46.5 

36 

26  5 

62 

38  3 

88      . 

46.8 

37 

27  O 

63 

38.7 

89      . 

47  .  i 

38      '" 

27  5 

64 

39  -O 

90 

47  .  4 

28  i 

65 

39  4 

91 

.    .      ..      47.6 

28  6 

66 

39  8 

92 

47  9 

67 

40  I 

93 

.    .48.3 

42 

29  6 

68 

.    ...  40  .  5 

94 

...48.5 

A7 

•JQ      I 

69 

40  8 

95 

;;;:  y? 

44 

30  6 

70       .  .  .  . 

41  .2 

96  : 

49  .  o 

A< 

31  o 

71 

41  5 

97 

49  .  2 

46  ' 

41  9 

98 

49  .  5 

4.7 

32  o 

73 

.  .42    2 

99 

49  .  7 

IOO 

50.0 

PLATE  VII. 
Example  of  Application  of  the  Chart 

If  expenses  are  27%  of  the  selling  price,  then  37%  of  the  cost  price  must  be  added 
to  the  cost,  in  order  to  make  the  selling  price  cover  the  27%  of  expenses.  Thus:  Cost 
price  is  $1.00.  37%  of  $1.00  is  370.  Add  3?c.  to  $1.00,  and  the  selling  price  is  $1.37- 
As  27%  of  $1.37  is  37c.,  it  is  evident  that  the  selling  price  includes  cost  price  plus  the 
necessary  27%  of  expenses. 

go  beyond  these  figures,  but  the  concern  that  nets  from  3% 
to  5%  on  each  turn-over  may  be  considered  successful  in 
retailing.  The  number  of  turn-overs  varies  from  one  and 
one-half  or  two  to  ten  a  year.  In  general  merchandise,  three 
to  four  turns  in  a  year  is  considered  fairly  good  business. 
Discounts  for  cash. — A  large  element  in  the  profit  mak- 
ing of  a  store  is  the  taking  of  all  discounts  offered  by  the 
wholesalers  or  manufacturers  for  early  cash  payments. 
These  amount  to  from  2%  to  7%,  or  even  more,  from  billed 
prices  for  payments  made  within  ten  days,  or  other  stated 

221 


RETAIL    SELLING   AND    STORE    MANAGEMENT 

periods.  Discounts  encourage  prompt  payments,  since  they 
are  invariably  higher  than  regular  rates  of  interest.  From 
the  retailer's  standpoint,  passing  a  discount  means  paying 
an  exceedingly  high  rate  of  interest  for  the  use  of  the  net 
amount  that  would  have  been  accepted.  From  the  whole- 
saler's standpoint,  the  discount,  if  not  accepted,  should  be 
large  enough  to  cover  not  only  interest  on  the  net  amount, 
but  also  the  extra  expenses  that  come  to  a  firm  that  must 
wait  for  its  money,  and  the  risk  of  loss  of  payment  which 
increases  rapidly  as  the  account  grows  older. 

Dating. — Bargaining  for  terms — that  is,  for  discounts 
and  dating — is  a  part  of  the  work  of  the  buyer.  In  some 
lines  the  terms  are  nominally  short  time,  but  long  in  reality, 
because  the  bills  are  dated  into  the  future,  the  discount 
terms  beginning  with  the  future  date  rather  than  with  the 
date  of  sale.  Dating,  as  this  practice  is  called,  is  universal 
in  certain  lines,  such  as  hats  and  caps,  clothing,  and  other 
goods  sold  for  delivery  several  months  after  the  date  of 
the  sale.  There  is  good  reason  for  the  practice  in  these 
lines.  In  other  lines,  however,  in  which  delivery  is  made 
immediately  after  the  sale,  the  method  is  an  anomaly  in 
modern  business — a  survival  of  the  long  time  terms  of  the 
past.  It  is  in  this  practice  of  dating  that  a  considerable 
amount  of  discrimination  and  underhand  competition  may 
be  accomplished.  The  store  that  can  secure  long  dating 
at  a  time  when  investments  will  be  profitable,  but  when  its 
convertible  assets  are  low,  is  in  a  much  better  position  from 
the  buying  standpoint  than  the  store  that  must  pay  imme- 
diate cash,  or  forfeit  its  discounts.  With  coming  standard- 
ization of  the  methods  of  manufacture  and  of  selling,  many 
think  that  big  discounts  will  be  reduced  and  dating  elim- 
inated. 

Selling  price  not  based  alone  on  costs  of  selling. — As 
has  already  been  stated,  cost  and  expense  are  by  no  means 
the  sole  factors  in  determining  the  selling  price  of  goods. 

222 


THE   COST   OF   SELLING 

Selling  price  is  that  amount  which  goods  will  command  in 
the  market.  Selling  price  is  the  measure  of  desirability  of 
an  article  to  a  customer.  This  desirability  may  be  far 
higher  than  actual  costs  of  production  and  selling.  The 
point  is  that  merchants  should  stop  handling  an  article  for 
which  the  demand  is  so  weak  that  it  will  not  command  at 
least  a  price  equal  to  the  sum  of  the  items  of  cost  and  ex- 
penses. Cost  accounting  determines  accurately  what  that 
minimum  price  must  be. 


CHAPTER   XVII 
BUYING  FOR  A  RETAIL  STORE 

Importance  of  good  buying. — It  is  absolutely  essential 
that  the  buying  for  a  retail  store  should  be  well  done.  Poor 
buying  puts  unnecessary  burdens  upon  the  salesmen,  and 
results  in  the  necessity  of  marking  down  the  selling  price 
of  the  goods  in  order  to  get  rid  of  them.  The  essential  prin- 
ciple of  good  buying  is  to  get  what  the  people  will  want, 
and  have  it  for  sale  when  they  want  it.  The  buyer's  sole 
aim  should  be  to  buy  what  he  is  sure  will  please  his  cus- 
tomers. He  should  find  the  best  possible  bargains  for  them 
in  both  quality  and  price.  When  he  has  done  his  very  best 
in  this  respect,  he  is  likely  to  be  an  enthusiastic  salesman, 
and  he  will  be  able  to  convey  some  of  his  spirit  of  confidence 
in  the  goods  to  his  assistants  so  that  they  also  will  be  better 
salesmen.  Buying  right  results  in  confidence  in  the  goods 
and  confidence  in  their  utility  for  the  store's  customers. 

Where  to  buy. — Where  to  buy  is  an  important  question. 
Shall  the  goods  be  ordered  from  distant  markets  or  from 
the  nearest  dealers?  There  is  general  concurrence  in  the 
belief  that  a  buyer  can  do  better  in  the  long  run  by  sticking 
to  those  dealers  nearest  at  hand,  whose  stocks  are  complete. 
There  are  many  advantages  in  forming  good  trade  connec- 
tions with  a  nearby  wholesaler,  which  are  missing  in  con- 
nections with  distant  houses.  In  the  former  case  the  goods 
arrive  more  promptly;  and  it  takes  less  time  and  expense 
to  order  new  goods,  to  effect  exchanges,  and  to  make  settle- 

224 


BUYING   FOR  A   RETAIL   STORE 

ments.  There  may  also  be  some  advantage  in  transportation 
charges,  though  this  item  must  be  balanced  with  any  increase 
in  prices  over  those  offered  by  the  more  distant  dealers. 
On  the  other  hand,  many  merchants  try  to  buy  as  close  to 
the  source  of  supply  as  possible,  as  for  example,  directly 
from  the  manufacturers.  This  practice  is  growing  in  most 
lines,  especially  in  large  stores.  In  fact,  the  future  of  whole- 
salers is  threatened  by  a  decided  movement  to  "cut  out  the 
middleman."  It  is  not  likely  that  wholesalers  can  be  dis- 
placed. Their  functions  are  too  numerous  and  of  too  great 
value;  but  readjustments  in  trading  conditions  affecting 
them  are  taking  place  continually,  and  the  end  of  this  move- 
ment is  not  yet  in  sight. 

Buy  in  few  places. — There  is  general  concurrence  in  the 
belief  that  scattering  one's  orders  among  many  dealers  is 
not  a  good  practice.  This  principle  suits  the  wholesaler. 
He  says,  "Buy  all  your  goods  from  us.  We  will  then  take 
an  interest  in  your  firm,  let  you  know  about  special  favorable 
or  unfavorable  conditions,  and  give  you  better  prices  and 
credit  rating  than  if  you  should  buy  from  several  others 
also."  This  is,  no  doubt,  the  truth,  but  the  retailer  who 
ties  up  in  any  way  to  one  wholesaler  must  do  so  only  upon 
the  condition  that  he  does  receive  the  benefits  promised. 
If,  at  any  time,  the  wholesaler  should  neglect  to  live  up  to 
his  end  of  the  understanding,  the  retailer  should  be  in  po- 
sition to  transfer  his  trade  at  once  to  other  markets.  The 
cases  in  which  wholesalers  or  manufacturers  have  taken 
advantage  of  retailers  who  had  become  dependent  upon  them 
for  all  goods,  are  too  numerous  to  be  passed  over  without 
cautioning  retailers  to  be  careful  in  entering  into  buying 
connections.  The  wholesaler  wants  trade  and  will  gladly 
offer  many  special  services  to  get  it ;  but  after  he  once  gets 
it,  he  has  been  known  to  forget  to  continue  the  special  serv- 
ices. The  retailer  should  place  his  trade,  if  possible,  with 
wholesale  houses  that  deal  squarely  always,  even  if  their 

225 


RETAIL    SELLING   AND    STORE    MANAGEMENT 

prices  are  a  little  higher  than  those  of  less  reliable  houses. 

Wholesale  houses  and  manufacturers  doing  business  with 
retailers  watch  the  affairs  of  their  retail  customers  very 
closely  if  it  is  known  that  they  spread  their  trade  around 
among  many  dealers.  The  credit  rating  of  such  dealers  is 
usually  lower  than  that  of  those  who  deal  with  only  few 
houses.  The  man  who  can  buy  for  cash  and  asks  no  fa- 
vors of  any  one,  can,  if  he  sees  fit,  spread  his  trade  where- 
ever  he  wants  to,  but  experience  seems  to  prove  that  the 
small  dealer  with  limited  capital  had  better  trade  with  only 
a  few  good  firms. 

Method  of  buying. — It  is  advisable  that  the  buyer  should 
visit  the  markets  as  often  as  possible,  and  take  his  chief 
salesman  with  him  when  he  goes.  These  visits  are  pro- 
ductive of  good  to  the  buyer  and  to  the  store  in  an  educa- 
tional way ;  and  often  personal  visits  are  helpful  in  getting 
better  prices.  Tendencies  in  style  and  in  custom  and  new 
improvements  may  be  studied.  On  the  other  hand,  many 
merchants  report  that  they  can  get  better  prices,  as  a  rule, 
when  they  buy  from  traveling  salesmen  who  visit  their 
stores.  The  third  method  of  purchasing,  namely,  ordering 
by  mail  from  catalogs,  needs  to  be  compared  with  the  first 
two  for  any  given  store  and  the  results  of  the  comparison 
applied  in  practice.  The  expense  of  traveling  salesmen  in 
the  aggregate  is  enormous,  and  must,  of  course,  be  added 
to  the  cost  of  the  goods.  It  would  be  much  better  for  both 
consumer  and  retailer  if  this  great  amount  of  money  could 
be  saved,  and  the  prices  of  goods  to  that  extent  lessened. 
On  the  other  hand,  mail-order  houses  spend  perhaps  an 
equal  amount  of  money  on  catalogs  and  advertising.  The 
problem — the  general  relative  cost  of  distribution  of  goods 
and  of  buying  through  salesmen  and  by  mail — is  still  un- 
solved. Practically  speaking,  we  cannot  get  along  with- 
out either  salesmen  or  advertising  at  the  present  time. 
Even  when  products  are  entirely  controlled  by  monopolies, 

226 


BUYING  FOR  A  RETAIL  STORE 

they  find  it  profitable  to  send  traveling  salesmen  on  the 
road  to  get  the  business. 

A  growing  practice  is  for  dealers  to  co-operate  in  their 
buying.  There  is  no  reason  why  this  plan  should  not  suc- 
ceed in  some  lines  and  especially  with  staple  articles,  pro- 
vided enough  dealers  join  in  the  enterprise  to  make  it  prof- 
itable to  employ  a  good,  professional  buyer  who  knows  his 
business.  The  secret  of  success  in  all  co-operative  industry 
is  good  management,  and  good  management  costs  money. 
There  is  now  a  kind  of  co-operation  extensively  promoted  by 
professional  buyers.  Some  of  them  located  in  the  large  mer- 
cantile centers  make  arrangements  with  stores  throughout 
the  country  to  serve  as  their  buying  representatives,  to  watch 
the  market,  to  pick  up  bargains,  and  to  notify  their  clients 
of  style  changes,  and  so  on.  For  these  services  each  store 
pays  a  fee.  But  true  co-operation  involves  the  organization 
of  the  stores  themselves,  and  of  this  type  of  organization 
there  are  but  a  few  examples  in  this  country.  It  is  likely  that 
co-operation  will  be  considered  much  more  in  the  future 
than  it  has  been  in  the  past.  In  a  certain  sense,  it  is  the 
logical  way  for  the  small  dealers  to  meet  the  competition 
of  the  big  stores  and  of  the  chain  store  systems.  The 
chain  stores  get  all  the  advantages  of  co-operative  buying 
under  their  single-head  management. 

Bargain  hunters. — Many  buyers  are  constantly  on  the 
lookout  for  "special  bargains,"  "job  lots,"  and  "snaps." 
This  is  well  enough  in  a  way  and  for  certain  purposes,  but 
the  average  store  does  better  in  stocking  from  regular  lines. 
Bargain  hunters  come  to  be  known  in  the  wholesale  busi- 
ness as  well  as  in  the  retail  store,  and,  whenever  they  ar- 
rive in  a  jobbing  house,  the  salespeople  prepare  to  meet  them 
in  such  a  way  as  to  get  their  trade  and  yet  not  lose  any 
money. 

Buy  little  and  buy  often. — Discounts  on  cost  prices, 
offered  for  taking  large  quantities,  are  a  temptation  that 

227 


RETAIL   SELLING   AND    STORE    MANAGEMENT 

every  buyer  meets.  In  order  to  get  these  better  prices,  buy- 
ers often  overstock  and  thereby  tie  up  good  store  capital 
with  the  ultimate  result  of  having  to  sell  much  of  the  stock 
at  little  or  no  profit.  The  only  safe  rule  in  this  matter  is 
to  buy  only  what  is  absolutely  needed  to  keep  up  the  store's 
stock,  take  as  much  discount  as  is  offered  on  this  amount, 
and  then  buy  often.  Most  successful  businesses  aim  at  small 
but  complete  stocks  and  quick  turn-overs.  This  keeps  the 
store's  capital  in  almost  constant  motion. 

The  dealer  who  buys  in  small  quantities  has  the  oppor- 
tunity to  buy  a  greater  variety,  and  by  keeping  a  very  close 
watch  of  his  stock  so  as  to  prevent  being  out  of  anything, 
he  may  draw  more  trade  and  thereby  make  more  profit. 
Some  dealers  make  it  a  point  to  order  goods  every  day. 
The  policy  of  buying  in  small  amounts  is  growing  rapidly 
among  successful  merchants.  In  certain  lines,  some  mer- 
chants actually  succeed  in  disposing  of  a  large  part  of  the 
stock  purchased  in  each  bill  before  the  term  of  discount 
expires.  In  this  way  they  are  able  to  pay  for  the  goods  out 
of  the  money  that  has  been  received  from  the  sales  of  the 
articles.  The  doing  of  business  on  the  capital  of  the  whole- 
salers and  manufacturers  is  as  satisfactory  to  them  as  it  is 
to  the  retailer,  provided  all  bills  are  met  within  a  stated 
time.  In  these  days  of  rapid  communication  by  telephone 
and  telegraph,  especially  if  the  store  is  within  a  few  hours 
of  the  sources  of  supply,  this  plan  can  be  carried  out  much 
more  extensively  than  it  is  at  present.  In  the  long  run 
the  biggest  profits  are  made  on  quick  turn-overs,  on  new 
goods,  and  by  taking  the  discounts  on  all  bills. 

Exclusive  lines. — Finally,  it  is  frequently  a  good  policy 
to  buy  exclusive  brands  or  styles,  or  to  take  agencies  for  the 
town.  The  buyer  does  this  so  that  his  competitors  cannot 
get  the  same  lines  and  open  up  a  price  competition.  He 
buys  wherever  he  can  get  uniformly  fair  treatment  and  good 
stock,  and  in  the  nearest  possible  market.  He  does  not 

228 


BUYING   FOR   A   RETAIL   STORE 

scatter  his  orders  except  where  necessary,  and  he  buys 
little  at  a  time  but  often.  He  works  on  the  principle  that 
he  is  serving  the  people  in  his  community,  and  that  "goods 
well  bought  are  half  sold." 

The  buyer's  qualifications. — In  order  that  the  buyer  may 
successfully  accomplish  what  has  been  set  forth  in  the  pre- 
ceding paragraphs,  it  is  necessary  that  he  should  be  fitted 
by  training  and  personality  for  his  work.  In  the  first  place, 
the  professional  buyer  should  be  a  salesman,  one  who  fully 
understands  the  selling  business.  The  requirements  in 
strength  of  character  are  even  higher  than  those  of  a  sales- 
man, however,  for  he  will  be  subjected  to  stronger  and  more 
insidious  temptations.  He  will  be  invited  to  dine,  to  go  to 
the  theater,  to  smoke,  to  drink,  to  drive,  to  make  a  few 
dollars  on  the  side,  and  he  will  be  given  presents.  If  he  has 
a  weak  spot  in  his  character,  some  salesmen  will  find  it  out, 
and  thereafter  his  success  as  a  buyer  will  be  limited.  As 
a  trustee  of  his  firm's  resources  he  must  invest  its  funds  in 
the  best  possible  way,  and  no  personal  interests  should  come 
between  him  and  his  duty.  He  must  be  secretive,  and  while 
buying  should  say  but  little.  His  thoughts  should  be  con- 
cealed, except  when  he  wants  them  to  show.  Buying  is  a 
serious  business,  and  whatever  is  purchased  must  be  taken, 
not  to  please  the  salesman,  but  to  please  the  hundreds  of 
people  constituting  the  buyer's  trade.  The  buyer  invariably 
does  best  in  the  long  run  who  accepts  not  a  single  personal 
favor  of  any  kind  from  salesmen.  Such  a  buyer  will  earn 
the  hearty  respect  of  all  good  salesmen,  because  absolutely 
square  dealing  always  appeals  to  all  good  people. 

Buyer's  knowledge. — In  addition  to  possessing  an  un- 
impeachable personal  character,  so  far  as  honesty  and 
squareness  are  concerned,  the  buyer  needs  to  know  his  busi- 
ness. He  needs  to  know  the  general  market  conditions, 
the  factors  affecting  the  market  prices,  and  current  tend- 
encies. He  needs  particularly  to  know  the  condition  of  his 

229 


RETAIL    SELLING    AND    STORE    MANAGEMENT 

own  house  both  as  to  stocks  and  finances.  Before  offering 
to  buy  he  should  know  how  much  cash  is  directly  available, 
what  liabilities  are  falling  due,  what  possible  drains  may 
occur,  and  what  the  prospects  are  for  future  resources  in 
cash.  In  order  to  know  the  latter,  he  must  have  made  es- 
timates of  the  monthly  income  of  the  business  with  proper 
allowances  for  inactive  and  dull  months;  and  he  should 
know  when  his  community  gets  paid — that  is,  the  time  of 
pay  days  and  the  time  when  the  community's  products  are 
turned  into  cash. 

He  knows  from  his  study  of  the  credit  man's  reports  what 
credits  fall  due  and  the  probable  percentage  of  slow  and 
of  uncollectible  accounts.  He  knows  before  he  goes  to  the 
wholesale  dealers  what  credit  standing  and  limits  his  house 
is  likely  to  get ;  and  he  prepares  in  advance,  with  great  care, 
the  statements  that  will  be  required.  When  he  confronts 
the  wholesale  credit  man,  he  is  ready  to  tell  completely  and 
without  hesitation  the  facts  that  this  official  will  want. 
In  a  large  store  it  may  be  that  several  of  these  details 
are  attended  to  and  settled  by  the  buyer's  superiors,  but,  in 
any  case,  his  buying  ability  for  the  firm  will  be  enhanced 
if  he  understands  fully  what  the  conditions  are.  In  addi- 
tion to  the  financial  facts,  he  is  in  touch,  or  in  accord,  with 
the  policies  of  his  store,  so  that  its  central  plan  or  method 
will  be  served. 

Knowledge  of  the  goods. — The  buyer  must  know  the 
goods.  The  salesman  before  him  is,  presumably,  an  expert. 
From  him  the  buyer  may  learn  much  that  is  new  concerning 
the  goods,  but  it  is  important  that  he  should  be  prepared 
to  make  his  own  judgments  upon  their  suitability  for  his 
trade.  Therefore  he  must  know  as  fully  as  possible  how 
the  goods  are  produced  or  manufactured.  This  will  help 
him  to  look  for  strong  points  as  well  as  possible  imperfec- 
tions. It  will  help  him  to  know  whether  colors  are  fast* 
where  goods  are  likely  to  wear  out,  and  where  they  are 

230 


BUYING   FOR   A   RETAIL    STORE 

likely  to  be  unsatisfactory.  He  must  know  something  of  the 
costs  of  production,  including  not  only  the  raw  materials, 
the  labor,  and  the  capital  investment,  but  also  the  cost  of 
the  designing,  coloring,  etc.  In  summary,  he  needs  to  know 
the  qualities  of  the  goods  he  is  buying,  and  he  should  know 
just  about  what  they  ought  to  cost,  allowing  a  fair  profit  to 
the  producers  and  wholesalers. 

How  to  get  this  knowledge. — This  extensive  knowledge 
of  market  conditions  of  his  house  and  of  his  goods  can  be 
obtained  only  by  careful,  painstaking  study  and  experience. 
The  buyer  is  usually  what  may  be  called  a  graduate  sales- 
man. He  has  served  his  apprenticeship  back  of  the  counter. 
He  has  diligently  studied  the  wants  of  people,  what  they 
like,  and  how  they  like  it.  He  has  studied  his  firm — its  lim- 
itations as  well  as  its  strong  features.  He  knows  what 
classes  of  trade  its  success  depends  upon.  He  has  studied 
the  market  as  an  assistant  buyer  and  as  a  reader  of  reli- 
able trade  journals  for  years.  Probably  he  has  made  special 
studies  in  schools  or  elsewhere  in  subjects  affecting  his  lines, 
as  for  example,  in  mechanics,  or  in  art,  political  economy, 
or  commercial  geography. 

What  to  buy. — The  first  step  in  determining  what  and 
how  much  to  buy  is  to  study  the  experience  of  the  house. 
Here  the  buyer  will  learn  what  has  sold  well  in  the  past,  and 
what  is  therefore  profitable  to  carry.  This  is  not  a  certain 
indicator  of  future  business,  but  it  is  commonly  used,  and, 
in  most  respects,  is  the  safest  indicator  for  most  buyers  to 
use.  But  if  the  buyer  will  add  a  careful  survey  of  his  trade 
to  his  knowledge  of  the  past  experience  of  the  house,  his 
chances  for  good  buying  will  be  increased.  For  example, 
every  community  has  certain  standards  of  style,  whether  it 
be  in  dress  or  in  buggies.  Broadly  speaking,  everyone  has 
noted  the  differences  in  "eastern"  and  "western"  styles ;  the 
terms  "southern,"  "city,"  "Broadway,"  etc.,  are  applicable 
to  large  sections. 

231 


RETAIL    SELLING   AND    STORE    MANAGEMENT 

Every  community  also  is  likely  to  have  its  own  peculiari- 
ties or  tastes  in  style.  In  some  places  both  men's  and  wom- 
en's fashions  are  set  perhaps  unconsciously,  by  a  few  of  the 
so-called  leaders  of  fashion.  The  colors  and  models  selected 
by  them  are  followed  in  a  general  way  by  a  considerable 
number  of  others.  A  buyer  needs  to  study  what  will  best 
please  these  leaders;  he  will  be  quick  to  note  the  growing 
tendencies  in  their  wants. 

He  will  know  what  periodicals  are  read  in  his  community, 
and  hence  the  kinds  of  advertisements  that  are  constantly 
at  work  building  up  demand.  He  will  aim  to  have  these 
advertised  goods,  or  others  very  nearly  like  them,  ready  for 
the  demand  when  it  begins  to  be  felt.  The  number  of  mag- 
azine readers  is  increasing  rapidly,  and  the  advertising  in 
these  magazines  is  becoming  more  and  more  powerful.  A 
retail  merchant  cannot  afford  to  neglect  this  influence  on 
popular  demand.  Most  retail  people  would  be  surprised  to 
learn  the  exact  figures  regarding  the  number  of  people  in 
their  town  who  are  giving  close  attention  to  the  advertising 
in  the  magazines.  There  is  hardly  a  family  in  most  towns 
that  does  not  have  some  sort  of  magazine  or  periodical,  and 
many  families  are  subscribers  to  a  number  of  magazines. 
Wherever  a  periodical  goes  in  these  days,  there  goes  adver- 
tising, and  its  influence  will  be  felt  sooner  or  later. 

In  determining  what  to  buy,  the  buyer  who  has  an  inti- 
mate knowledge  of  the  people  for  whom  he  is  buying — that 
is,  his  customers — has  a  decided  advantage.  For  example, 
if  he  knows  what  the  income  of  the  people  of  his  community 
is,  and  their  habits  and  ideas  about  its  use,  he  has  a  good 
foundation  upon  which  to  base  his  belief  as  to  what  will 
sell  well.  If  there  are  strong  national  or  racial  traits  or 
habits  among  certain  classes  of  his  trade,  he  ought  to  know 
that.  If  the  customers  own  their  homes,  it  will  make  a 
difference  in  their  buying  in  some  lines  as  compared  with 
what  they  would  buy  if  they  only  rented.  The  kind  of 

232 


BUYING    FOR   A   RETAIL    STORE 

homes  the  people  live  in  is  an  especially  important  item 
of  knowledge  for  the  buyer — the  size,  the  number  of  rooms, 
the  methods  of  heating,  means  taken  for  sanitation  and 
cleanliness,  the  usual  kinds  of  ornaments,  whether  there  is 
any  desire  to  improve  the  homes  or  not,  whether  the  wives 
do  the  work  themselves  or  hire  servants,  whether  the  home- 
makers  know  anything  about  domestic  science  or  not, 
whether  much  of  the  clothing  and  foods  are  prepared  at 
home  or  purchased  already  prepared.  It  pays  for  a  buyer 
to  know  personally  as  many  people  as  possible,  to  know  the 
interior  of  their  homes,  to  know  what  ideals  the  people  are 
struggling  to  live  up  to,  and  to  know  what  will  satisfy  them 
best. 

How  much  to  buy. — Buyers  have  not  reduced  their  es- 
timates of  demand  to  a  scientific  basis  in  most  cases.  The 
past  experience  of  the  store  and  the  general  knowledge 
that  the  buyer  may  have  of  his  customers  furnish  the  basis 
for  what  is  but  little  more  than  a  good  guess.  To  avoid  the 
evils  that  may  come  from  bad  guessing,  the  wise,  practical 
buyer  purchases  at  the  beginning  of  the  season  only  a  part 
of  the  goods  which  he  estimates  he  will  actually  need.  As 
to  varieties,  he  may  follow  such  a  rule-of-thumb  as  the 
following:  "Spend  two-thirds  of  your  appropriation  on 
staples,  and  one-third  for  new  lines  or  novelties."  Such 
policies  it  would  be  well  to  follow  in  any  case  but  there  is, 
no  doubt,  much  opportunity  for  still  more  scientific  deter- 
mination of  demand,  difficult  as  the  problem  may  appear 
at  first  sight.  A  scientific  determination  can  be  arrived  at 
only  by  a  deep  study  of  economics  and  sociology. 

In  the  field  of  buying  there  is  a  possibility  of  applying 
some  scientific  principles  that  may  prove  of  value.  For 
example,  the  buyer  guesses  how  much  a  community  will 
spend  for  goods  next  season.  There  are,  it  is  true,  some 
uncertain  elements  in  this  problem  even  when  considered 
from  the  standpoint  of  economics.  But  with  the  help  of 

233 


RETAIL    SELLING   AND    STORE    MANAGEMENT 


complete  and  correct  census  figures,  it  is  possible  to  learn 
just  how  many  people  there  are  in  a  given  community,  their 
ages,  sexes,  occupations,  whether  married  or  not,  and  even 
their  incomes.  By  a  principle  of  economics  known  as 
Engel's  Law,  it  may  be  possible  from  one's  knowledge  of 
the  income  of  a  class  to  determine  very  closely  what  amounts 
will  be  expended  for  food,  for  clothing,  for  rent,  for  fuel, 
for  light,  for  health,  for  education,  for  church,  for  recre- 
ation, etc. 

The  table  following  gives  the  results  of  an  investigation 
made  by  the  United  States  Bureau  of  Labor  in  1891  and 
1903.  Two  thousand  families'  annual  expenditures  were  in- 
vestigated in  1891,  and  over  eleven  thousand  in  1903. 
Although  these  statistics  were  compiled  some  years  ago, 
there  is  no  reason  to  suppose  that  there  would  be  any  great 
change  in  the  results  if  similar  statistics  were  compiled  at 
present. 

EXPENDITURES    OF    AMERICAN     FAMILIES    INVESTIGATED    BY    THE 
UNITED  STATES  BUREAU  OF  LABOR 


PER  CENT  OF  TOTAL  EXPENDITURES] 

Food 

Clothing 

Rent 

Fuel  and 
light 

Miscella- 
neous 

1891 

1903 

1891 

1903 

1891 

1903 

1891 

1903 

1891 

1903 

Under  $200         

49-6 
44-3 
45-6 
45-1 
43.8 
41.2 
38.9 
38.1 
34-3 
34-7 
30.7 
28.6 

41.1 

50.9 
47-3 
48.1 
46.9 
46.2 
43-5 
41.4 
41.4 
39-9 
38.8 
37-7 
36.5 

43-1 

12.8 

14-3 
14.1 
14.4 
15-3 
15-9 
16.3 
iS-i 
16.8 
17.  S 
16.5 
15-7 

15-3 

8.7 
8.7 
10.  0 

ii.  4 

12.0 
I2.Q 
13-5 

13-6 
14.4 
I5-I 
14-9 
15-7 

13-0 

15-5 
14-7 
15-0 
15-3 
15.2 
15-5 
IS.  6 
16.1 
14-9 
iS.i 

12.2 
12.6 

16.9 

18.0 
18.7 
18.6 
18.4 
18.5 
18.1 
17.1 
17-6 
17-5 
16.6 
17-4 

18.1 

8.1 
7.6 
7-o 
6.6 
6.6 
5-9 
5-3 
5-3 
4-7 
4-5 
3-9 
3-0 

5-9 

8.0 
7-2 
7-1 
6.7 

6.2 

5.8 
5-3 
5-0 
5-0 
4-9 
4-7 
5-0 

5-7 

14.0 
19.2 
18.3 
18.6 
19.1 

21.6 

23.9 
25-5 
29.1 
28.1 
36.7 
40.1 

IS-  6 
18.8 
16.1 
16.5 
17.2 
19-4 

21.6 

23.0 
23.2 
23-7 
26.1 
25-4 

20.1 

$600  or  under  $700  

$900  or  under  $1,000  

$1,200  or  over  

All  

I5-I 

22.7 

From  Ely's  Outlines  of  Economics,  Revised  Edition,  page  119. 

Considering  the  items  of  expense  in  greater  detail  for  the 
average  American  family,  the  i8th  Annual  Labor  Report 

234 


BUYING   FOR   A   RETAIL    STORE 

of  the  U.  S.  Bureau  of  Labor  gives  the  following  as  the 
average : 

Fresh  beef $50. 25 

Salt  beef 5.26 

Fresh  hog  products 14.02 

Salt  hog  products 13-89 

Vinegar  and  pickles 4.12 

Other  food 20.40 

Other  meat 9 . 78 

Poultry 9.49 

Fish 8.01 

Eggs 16 . 79 

Milk 21.32 

Butter 28.76 

Cheese 2.62 

Lard 9.35 

Tea 5-30 

Coffee 10.74 

Sugar I5-76 

Molasses i .  69 

Flour  and  meal 16 . 76 

Bread 12.44 

Rice 2 . 05 

Potatoes 12.93 

Other  vegetables 18.85 

Fruit 16.52 

Rent 99-53 

Principal  and  interest  on  mortgage 12.15 

Taxes 5.75 

Insurance 20 . 98 

Fuel 32.21 

Lighting 8.15 

Clothing 107 . 90 

Organization  fees 8 . 90 

Religious  purposes 7 . 60 

Charity 2.39 

Furniture  and  utensils 26.28 

Amusements  and  vacations 12 .30 

Books  and  newspapers 8.38 

Intoxicating  liquors 12 .45 

Tobacco 10.91 

Sickness  and  death 20. 52 

Other  purposes 45 . 14 

Total  for  all  purposes $768 . 64 

235 


RETAIL    SELLING   AND    STORE    MANAGEMENT 

In  similar  investigations  carried  on  in  Germany,  Engel 
found  that  the  percentages  expended  on  each  class  of  goods 
were  about  the  same  as  in  this  country.  It  should  be  noted 
that  people  expend  just  about  the  same  percentage  of  their 
incomes,  no  matter  what  they  receive,  for  clothing,  fuel  and 
light,  and  rent.  The  percentage  for  food  diminishes  as  the 
income  increases,  while  the  percentage  for  miscellaneous 
items,  such  as  minister  to  comfort  and  mental  bodily  recre- 
ation, increase  with  the  increase  in  income.  Assuming  sta- 
ble industrial  conditions,  the  merchant  can  be  sure  that  these 
amounts  will  be  expended  either  in  his  town  or  elsewhere. 
In  other  words,  he  may  be  sure  that  the  community's  de- 
mands will  be  satisfied. 

Other  problems  of  the  buyer. — The  buyer's  next  prob- 
lem is  the  determination  of  the  sources  of  supply  of  the 
goods  the  community  demands.  If  there  are  several  con- 
cerns supplying  the  same  article  or  class  of  goods  as  his 
store  supplies,  what  proportion  of  the  trade  can  he  draw? 
Past  experience  plus  careful  advertising  and  selling  are 
the  solutions  to  this  problem.  The  quality  of  the  goods  that 
can  be  purchased  by  a  class  of  people  depends  very  largely 
upon  their  average  income. 

The  styles,  colors,  and  shapes  which  will  be  in  demand  are 
to  be  determined  from  a  study  of  the  psychology  of  the 
people.  The  assortment  as  to  sizes  in  most  communities  will 
follow  another  scientific  principle  known  as  the  Law  of 
Normal  Distribution.  Stated  in  simple  terms,  this  law  says 
that  there  is  variation  in  everything,  as,  for  example,  in 
sizes ;  but  that  the  great  majority  of  sizes  demanded  will  be 
close  to  the  middle  point,  and  from  this  middle  point  the 
demand  will  fall  off  gradually  towards  both  extremes.  To 
illustrate:  Men's  shirts  run  in  standard  sizes  from  14  to  17. 
The  middle  point  is  15^2.  A  fair  assortment  of  sizes  iri  a 
single  line  of  shirts  would  probably  be  as  follows  for  most 
communities : 

236 


BUYING  FOR  A  RETAIL  STORE 

3  shirts  size  14 

6  shirts,  size  14^ 
12  shirts,  size  15 
15  shirts,  size  15^ 
12  shirts,  size  16 

6  shirts,  size  165/2 

3  shirts,  size  17 

The  variation  may  be  illustrated  by  a  diagram.  See  Plate 
VIII. 

The  numbers  given  in  this  table  are  intended  only  as  an 
illustration  of  the  principle.  They  represent  the  buying 
practice  of  one  store  for  a  regular  $1.00  shirt,  but  might  not 
be  practical  for  another.  The  bell-shaped  figure,  however, 
shown  in  Plate  VIII,  is  typical,  and  must  be  approximated 
in  all  purchases  involving  sizes,  if  left-overs  of  odd  sizes 
are  to  be  avoided. 


3 

^S/ze 

6 
/ 

\2. 

I 

~f  

14* 

> 

^\ 

15 
\ 

X, 

ia 

\ 
\ 

6 

\     , 

15 

IS* 

\ 

\ 

(6 

\ 

\ 

,6* 

/ 

L& 

\        * 

NORMAL  DISTRIBUTION/  OF 5izes. ILLUSTRATED. 

PLATE  VIII. 
237 


RETAIL    SELLING   AND    STORE    MANAGEMENT 

Stock  up-keep. — Upon  the  buyer  rests  the  problems  of 
stock  up-keep.  When  surplus  stock  is  kept  in  a  stock  room 
or  elsewhere  apart  from  the  salesrooms,  it  should  be  placed 
in  charge  of  one  man  who  should  be  held  responsible  for  the 
care  of  the  goods.  The  stock-keeper  should  keep  a  careful 
record  of  everything  that  he  has  on  hand,  and  this  record 
should  be  so  arranged  as  to  show  at  a  glance  just  what  goods 
are  in  stock.  Goods  needed  in  the  salesroom  should  be 
given  out  only  on  written  orders  which  should  be  preserved 
as  receipts.  In  some  lines,  especially  in  staple  goods,  this 
record  will  be  sufficient  to  show  what  must  be  purchased 
and  when.  When  any  line  is  almost  exhausted  in  the  stock 
room,  that  is  the  signal  to  replenish.  Such  a  plan  would 
not  be  practicable  for  hundreds  of  kinds  of  goods  sold  at 
retail,  however,  for  the  store's  entire  stock  is  often  on  the 
shelves,  on  the  tables,  or  in  the  showcases.  To  guard  against 
running  out  of  stock  the  buyer  and  his  assistants,  the  sales- 
men, should  keep  careful  watch  of  their  stock,  and  jot 
down  on  want  slips,  or  in  a  want  book,  calls  for  goods  not 
in  stock,  and  notations  concerning  any  supply  running  low. 
Standards  need  to  be  established  as  to  what  constitutes  a 
proper  amount  to  have  on  hand,  and  salesmen  should  be 
required  to  report  promptly  any  falling  below  this  amount. 
Successful  stores  aim  to  keep  up  their  sorts  but  in  as  small 
quantities  as  possible,  with  the  assurance  of  getting  replen- 
ishments quickly. 

Slow  moving"  goods. — No  matter  how  good  the  buying, 
it  is  bound  to  be  more  or  less  imperfect,  in  that  certain 
goods  will  move  more  slowly  than  others.  Some  articles 
will  develop  tendencies  to  become  "stickers."  The  buyer 
will  supervise  the  arrangement  of  his  stock  so  as  to  get  the 
slow  movers  into  as  advantageous  places  as  possible.  The 
goods  should,  of  course,  be  marked  at  the  start  at  the  price 
for  which  it  is  thought  that  they  will  sell.  If  this  price 
does  not  move  them,  "mark  downs"  become  necessary.  It 

238 


BUYING   FOR   A   RETAIL   STORE 

is  a  good  rule  in  the  case  of  all  merchandise  of  seasonable 
nature  to  clean  up  at  any  price  at  the  end  of  the  season. 
Some  stores  have  adopted  the  policy  of  encouraging  the  sale 
of  the  unpopular  goods  by  granting  commissions  to  the 
salesmen  upon  such  goods.  These  commissions  are  known 
variously  as  "PM's,"  "spiffs,"  and  "premiums."  As  a  re- 
sult of  the  granting  of  commissions,  some  salesmen  are 
sure  to  push  these  goods  unduly  for  the  sake  of  the  com- 
mission. This  will  mean  dissatisfied  customers;  hence  this 
practice  is  not  good  business.  It  does  not  pay  in  the  long 
run.  The  responsibility  for  bad  buying  should  be  shoul- 
dered by  the  buyer,  or  by  the  manager  who  placed  limi- 
tations upon  the  buyer,  causing  him  to  buy  the  bad  stuff; 
and  the  business  rather  than  the  customer  should  lose.  A 
large  part  of  the  "mark  downs"  should  always  be  attributed 
to  inefficient  buying. 

Treatment  of  traveling  salesmen. — Periodically  there  is 
an  outburst  of  traveling  men's  views  in  the  trade  and  busi- 
ness papers,  maintaining  that  retailers  do  not  accord  trav- 
eling salesmen  fair  treatment.  Judging  from  the  illustra- 
tions frequently  given,  there  is  ground  for  these  statements. 
There  is  much  that  the  salesmen  can  do  for  the  retailer  who 
invites  and  appreciates  help.  The  salesman  can  in  some 
cases  give  valuable  suggestions  on  selling  plans  and  cam- 
paigns. He  is  often  able  to  tell  the  retailer  what  the  trade 
conditions  are  better  than  trade  journals  can,  though  in  no 
case  does  he  take  their  place.  His  reports  to  his  house  may  be 
of  service  to  the  retailer  when  he  wishes  to  establish  or  ex- 
tend credit  relations.  The  retailer  can  afford  to  treat  the 
salesman  in  a  business-like  way.  Courtesy  here  as  else- 
where pays. 

Pricing  the  goods. — When  the  goods  are  ordered,  and 
when  they  are  received  and  checked  up  with  the  order  rec- 
ord or  invoice,  and  found  correct,  the  buyer  should  super- 
vise the  pricing.  As  stated  before,  goods  should  be  marked 

239 


RETAIL    SELLING    AND    STORE    MANAGEMENT 

at  prices  at  which  they  will  sell ;  but  unless  the  store  can  han- 
dle goods  that  will  pay  for  themselves,  for  the  expenses  of 
running  the  business,  and  a  profit  besides,  it  will  soon  close 
its  doors.  Hence  the  pricing  must  be  made  in  view  of  these 
expense  and  profit  factors,  as  has  been  explained  in  a 
previous  chapter. 


CHAPTER  XVIII 
RETAIL  ADVERTISING 

Kinds  of  retail  advertising. — Advertising  for  a  store  in 
the  larger  sense  includes  everything  that  can  be  done 
to  attract  the  attention  of  customers  and  help  draw  them 
to  the  store  to  see  and  to  purchase  the  goods  for  sale  there. 
In  this  sense,  the  very  best  form  of  advertisement  is  the 
satisfied  customer.  This  individual,  whoever  he  may  be, 
feels  right  about  his  purchases,  and,  whenever  the  oppor- 
tunity occurs,  he  tells  about  how  he  feels  or  thinks  regard- 
ing the  store  and  its  goods.  No  form  of  advertising  can 
hope  to  build  up  business  for  long  unless  there  are  satis- 
fied customers.  These  come  again  and  again,  and  bring 
in  their  relatives  and  friends,  or  throw  out  such  suggestions 
as  cause  their  relatives  and  friends  to  come  too. 

Good  will  of  the  public  towards  a  store  is  valuable  adver- 
tising. A  store  with  harmony  within  and  with  policies  of 
fairness  to  the  public  wins  large  trade  because  of  these 
facts.  The  fact  that  salesmen  feel  kindly  towards  their  em- 
ployer is  good  advertising,  as  is  also  the  fact  that  the  em- 
ployer does  everything  he  can  for  his  employes,  from  pay- 
ing good  wages  to  looking  after  their  health,  comfort,  and  en- 
joyment. 

Another  form  of  store  advertising  is  the  character  of  the 
building  itself — its  front,  its  windows,  its  situation.  These 
things  are  vastly  important;  they  have  been  discussed  else- 
where in  the  course. 

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RETAIL    SELLING   AND    STORE    MANAGEMENT 

The  display  of  goods  in  the  window,  the  display  of  goods 
in  the  store,  the  arrangement  of  the  store,  the  appropriate- 
ness of  its  fittings,  its  lighting,  heating,  and  ventilation  all 
have  high  value  as  advertising. 

The  services  of  the  salesman,  the  character  of  the  dem- 
onstration, the  attitude  of  the  salesman,  the  character  of 
the  goods,  the  efficiency  of  the  store  system,  and  the  de- 
livery system  are  other  and  most  important  items  in  the  ad- 
vertising of  a  store. 

Usually,  however,  the  term  advertising  is  taken  to  mean 
only  such  publicity  work  as  may  be  done  outside  of  the 
store.  This  would  include  personal  solicitation  by  salesmen 
outside  of  the  store,  but,  as  this  is  not  a  common  practice 
in  many  lines,  the  word  advertising  is  not  ordinarily  thought 
of  as  including  outside  solicitation.  In  its  ordinary  mean- 
ing advertising  is  publicity  for  the  store  obtained  by  means 
of  printed  matter. 

Aim  of  advertising. — The  aim  of  printed  retail  advertis- 
ing is  to  assist  in  the  sale  of  goods.  Such  advertising  is  a 
for  of  salesmanship,  and  its  purpose  is,  therefore,  to  help  in 
the  sale  of  goods.  Advertising  may  complete  the  entire  sale 
in  many  cases,  for  the  store  may  receive  many  orders  by  mail 
as  a  result  of  the  advertising ;  or  it  may  complete  the  sale  up 
to  the  point  of  actual  transfer  of  goods  for  the  money,  this 
last  stage  being  completed  by  the  salesmen.  In  fhe  great 
majority  of  cases,  however,  retail  advertising  does  very  well 
if  it  attracts  the  attention  of  the  public  and  arouses  enough 
interest  to  bring  a  large  number  of  people  to  the  store.  Here 
the  salespeople  must  complete  the  work.  It  is  evident,  then, 
that  advertising  is  entirely  dependent  upon  the  selling  or- 
ganization; and  that  there  is  need  for  closest  harmony,  co- 
operation, and  knowledge  of  each  other's  methods  by  both 
the  selling  and  advertising  departments,  in  order  that  there 
may  be  no  waste  efforts  in  either  field.  The  advertiser 
should  know  just  how  salespeople  show  and  sell  goods  so 

242 


RETAIL   ADVERTISING 

that  he  may  prepare  the  prospective  customers  for  the  kind 
of  selling  service  the  store  offers;  and  the  salesmen  should 
know  just  what  the  advertiser  is  advertising  and  how  he 
is  doing  it,  so  that  they  may  meet  the  customer  and  carry 
on  the  sale  from  the  point  where  the  advertising  left  off. 

Store  news. — In  general,  advertising  helps  a  store  to  sell 
by  attracting  the  attention  of  the  people,  by  announcing 
the  arrival  of  new  goods,  and  by  heralding  special  sales  and 
changes  in  the  store  which  will  affect  the  business.  Adver- 
tising that  is  good  is  really  store  news,  and  the  advertising 
man  may  be  compared  to  the  reporter  of  a  paper.  He  picks 
up  all  the  news  of  the  store  that  may  be  of  interest  to  pos- 
sible customers,  and  then  publishes  this  news  in  as  attrac- 
tive a  manner  as  possible. 

When  to  advertise. — Advertising,  to  be  effective,  must 
be  kept  up  continuously.  On  the  other  hand,  there  should 
be  no  advertising  that  does  not  have  something  of  interest 
to  the  people.  The  advertising  man  should  have  something 
to  say.  This  means  that  when  there  is  no  news  of  any  mo- 
ment occurring  in  the  store,  the  advertising  man  must  do 
as  the  city  newspaper  reporter  does — go  in  search  of  it, 
or  manufacture  it.  This  can  be  done  easily  and  legitimately 
in  a  store  by  starting  a  special  sale,  taking  in  a  new  line, 
closing  out  an  old  one,  etc.  The  store  that  does  not  have 
things  happening  in  it  regularly  is  not  in  the  current  of 
modern  merchandising. 

Advertising  mediums. — There  are  a  great  number  of 
kinds  of  printed  advertising,  and  there  are  several  ways  in 
which  this  advertising  matter  may  seek  to  gain  the  attention 
of  the  people.  It  is  generally  agreed  that  the  most  practical 
medium  for  retail  stores  doing  their  business  in  the  regular 
trading  sections  of  a  city  is  the  newspaper.  Neighborhood 
stores  and  others  that  draw  business  from  restricted  areas 
or  from  special  groups  of  customers  will  find  that  other 
mediums  are  more  profitable.  And  even  the  store  that  has 

243 


RETAIL    SELLING   AND    STORE    MANAGEMENT 

the  best  reason  for  using  newspaper  space,  frequently  finds 
it  a  good  investment  to  supplement  this  by  using  circulars, 
handbills,  letters,  mailing  cards,  package  slips,  booklets, 
catalogs,  and  various  forms  of  specialties  such  as  calendars, 
blotting  pads,  toys,  etc.  Some  of  these  have  considerable 
value  for  any  store.  A  few  are  considered  absolutely  es- 
sential by  most  progressive  merchants,  especially  when  cer- 
tain classes  of  trade  are  sought. 

Requisites  for  good  advertising. — Let  us  examine  the 
qualities  of  good  newspaper  advertising  for  a  retail  store.  In 
the  first  place,  the  advertisement  should  be  directed  to 
real  classes  of  people  and  not  at  random.  The  good  adver- 
tiser talks  right  to  the  point  and  in  ordinary  salesman's  lan- 
guage to  the  prospective  customer  who  reads  his  adver- 
tisement. What  he  has  to  say  is  clear,  easy  to  understand, 
and  brief.  His  style  is  cheerful,  but  entirely  free  from  fool- 
ishness. The  advertiser  neither  jokes  nor  "knocks."  He 
has  an  unclouded,  unperturbed,  optimistic  mind.  He  is 
much  interested  in  his  own  goods,  and  that  interest  he  tries 
to  convey  to  others.  He  uses  superlatives  but  rarely,  and 
when  he  does,  they  are  likely  to  be  effective. 

Tell  the  truth. — An  advertisement  must  be  true  from  top 
to  bottom.  The  entire  system  of  private  merchandising 
is  severely  criticized  for  digressions  from  this  rule,  and 
advertising  that  is  not  true  hurts  not  only  the  perpetrator 
but  also  all  other  advertisers  reaching  the  same  community. 
Nine-tenths  of  the  buying  public  are  women.  It  is  charac- 
teristic of  woman's  nature  to  be  extremely  sensitive  about 
being  misled.  If  a  store  advertises  in  any  way  that  devi- 
ates from  the  truth,  its  dishonest  advertisement  is  likely 
to  be  remembered  a  long  time.  If  you  want  your  advertise- 
ments read,  they  must  be  believable,  and  this  means  that 
they  must  be  invariably  true.  There  is  a  saying  that  some 
people  are  so  erect  that  they  lean  backwards.  In  advertis- 
ing there  needs  to  be  erectness  almost  to  this  degree.  Many 

244 


RETAIL   ADVERTISING 

stores  follow  such  a  rule  now  and  with  profit.  Their  ad- 
vertising men  are  required  to  understate  rather  than  over- 
state. Anything  that  looks  extraordinary  in  the  quality 
offered  for  the  price  or  in  price  reductions,  is  scrutinized 
carefully  before  it  is  published  for  fear  that  it  may  not  be 
believed  by  some  one. 

Descriptions. — The  descriptions  of  the  goods  should  be 
made  vivid,  the  purpose  being  to  make  them  stand  out 
clearly  in  the  customer's  mind.  No  good  advertising  man 
makes  use  of  "glittering  generalities,"  such  as  "best  there 
is  made,"  or  "best  in  the  world."  In  this  respect  the  mail- 
order advertiser  is  a  past  master ;  retail  salesmen,  as  well  as 
retail  store  advertisers,  can  well  spend  much  time  in  study 
of  the  methods  and  selling  copy  of  the  mail-order  house. 
According  to  the  nature  of  the  goods,  the  advertiser  will 
seek  to  arouse  in  the  reader's  imagination  an  image  of  how 
the  goods  would  really  look,  how  they  would  feel,  or  how 
they  would  affect  the  other  senses.  He  appeals  not  only  to 
the  imagination  to  get  the  correct  impression,  but  he  also 
seeks  to  excite  the  right  kind  of  feeling  to  go  with  the  im- 
pression. How  to  do  this  is  the  high  art  of  advertising.  The 
advertising  man  who  can  suggest  pleasing  feelings  along 
with  correct  ideas  about  his  goods  to  the  minds  of  his  read- 
ers is  an  artist  just  as  much  as  the  actor  who  excites  us  to 
laughter  or  to  tears,  the  musician  who  moves  to  exaltation, 
or  the  painter  who  presents  to  the  world  a  masterpiece  that 
expresses  life,  movement,  and  nature.  The  salesman  aims 
at  exactly  the  same  thing  as  the  advertisef ;  but,  owing  to  the 
limitations  of  the  medium,  the  advertiser's  art  is  much  more 
difficult. 

Heading. — Like  the  window  display,  the  advertisement 
should  be  seasonable,  appropriate,  and  have  attention-com- 
pelling quality.  To  get  the  attention,  aside  from  mechanical 
contrivances — rules,  borders,  white  space,  special  type,  etc., — 
the  chief  means  is  the  heading.  In  a  good  advertisement,  this 

245 


RETAIL    SELLING   AND    STORE    MANAGEMENT 

furnishes  in  not  more  than  four  or  five  words  the  basic 
thought  of  the  whole  message.  The  heading  should  never 
be  a  blind  misleading  expression.  It  should  catch  the  atten- 
tion of  every  possible  user  of  the  goods  advertised.  It  is 
the  most  important  part  of  any  advertisement.  It  tries  to 
reach  out  and  meet  people  on  the  plane  of  their  needs  and 
their  thinking.  It  states  what  they  would  state  if  they  hap- 
pened to  think  about  the  matter.  It  is  the  connecting  link 
between  the  store  and  the  desires  of  the  people. 

Illustrations. — If  illustrations  are  used,  they  should  be 
appropriate,  clear,  and  attractive  in  themselves.  An  illus- 
tration is  used  when  it  illustrates  or  points  out,  better  than 
words  can  express,  the  uses,  qualities,  or  beauty  of  the  goods 
that  are  for  sale.  Stock  cuts  and  illustrative  material  fur- 
nished by  bureaus  must  be  scrutinized  to  see  that  they  are 
really  adapted  to  the  retailer's  use.  The  location  of  illustra- 
tions with  reference  to  the  other  parts  of  the  advertisement, 
especially  with  reference  to  the  reading  matter  to  which 
the  illustration  refers,  is  important.  The  advertising  man 
must  seek  to  preserve  the  appearance  of  balance  in  the 
whole  advertisement,  but  he  must  also  see  that  the  illustra- 
tions really  illustrate  some  point  in  the  reading  matter. 

Prices. — Most  literature  on  retail  advertising  insists  that 
prices  should  be  given,  and  the  most  successful  modern 
stores  in  large  cities  do  feature  prices.  Specific  prices  for 
specific  articles  seems  to  be  the  best  rule.  General  expres- 
sions like  "Coats  from  $10  to  $50"  are  weak.  When  cut 
prices  are  advertised,  both  the  original  and  the  new  price 
should  be  given  in  dollars  and  cents.  Percentages  and  other 
ways  of  stating  reductions  mean  little  or  nothing  to  a  great 
number  of  people. 

Requisites  of  good  form. — Experiments  in  advertising 
have  shown  that  doubling  the  size  of  an  advertisement  more 
than  doubles  its  attention — drawing  power,  other  things 
being  equal.  That  is  to  say,  a  full  page  has  more  than  twice 

246 


RETAIL   ADVERTISING 

the  attention  value  of  a  half  page.  It  pays,  therefore,  to 
use  as  large  space  as  can  be  profitably  used  in  telling  one's 
business  news.  Large  space  gives  opportunity  to  use  me- 
chanical devices  for  getting  attention,  such  as  plenty  of 
white  space,  contrasting  set-up,  illustrations,  etc.  Crowding 
of  material  is  evident  at  first  sight,  and  makes  a  bad  im- 
pression. 

Location. — An  advertiser  may  contract  for  his  advertise- 
ment to  appear  in  "preferred  position/'  or  the  contract  may 
call  for  "run  of  paper."  "Preferred  position"  usually 
means  a  certain  page,  next  to  reading  matter,  and  in  read- 
ing columns;  "run  of  paper"  means  that  the  advertisement 
is  fitted  into  the  forms  wherever  it  can  go  most  economically 
according  to  the  notions  of  the  printer.  The  former  costs 
more  than  the  latter.  There  is  decided  value  in  "preferred 
position,"  however,  that  advertisers  must  consider. 

Emphasis. — Emphasis  can  be  secured  by  contrasts  of 
heavy  black-faced  type  with  light-faced  type,  also  by  means 
of  the  introduction  of  a  different  size  or  style  of  type.  Only 
a  very  few  kinds  of  type  should  appear  in  the  same  adver- 
tisement, and  a  continuous  uniformity  of  type-faces  is  very 
desirable  in  a  store's  advertising.  People  become  accus- 
tomed to  reading  it  easily,  and  the  first  step  to  favorable 
attention  is  taken  thereby. 

Ornament. — Decorations  and  ornaments  in  advertising 
are  dangerous.  They  are  likely  to  destroy  the  distinctness 
of  the  advertisement,  making  it  harder  to  understand  and  to 
read.  Ornament  is  likely  to  draw  attention  to  itself  and 
thereby  destroy  the  business  purpose  of  the  advertisement. 
Some  of  the  best  advertisers  confine  the  use  of  rules,  bor- 
ders, and  ornaments  to  the  plainest  lines,  making  them  serve 
the  eye  of  the  reader  in  getting  hold  of  the  plan  of  the 
advertisement  and  helping  to  lead  from  one  part  of  it  to 
another.  This  is  the  legitimate  function  of  such  embellish- 
ments in  retail  advertising.  Some  advertisers  that  are 

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RETAIL   SELLING   AND   STORE    MANAGEMENT 

known  the  world  over  do  not  use  ornaments  of  any  kind. 

Art  in  advertising. — There  should,  of  course,  be  order, 
meaning,  and  balance  between  the  parts  of  an  advertise- 
ment and  here,  also,  the  rules  of  art  apply  fully  as  well  as 
to  store  display.  Careful  advertising  men  preserve  balance 
not  only  among  the  various  forms  composing  the  whole  of 
the  advertisement,  but  also  between  the  shades  of  gray, 
resulting  from  the  use  of  light  and  heavy  type.  To  one 
who  will  shut  out  from  his  mind  what  a  good  advertisement 
says  to  him,  the  whole  presents  a  symmetrical,  well-balanced, 
beautiful  picture  of  lights  and  shades,  and  of  small  and  large 
groupings.  This  is  the  setting  that  the  advertising  man 
seeks  to  get  for  what  he  has  to  say.  This  is  what  helps 
to  give  that  good  first  impression  to  the  reader  which  is  so 
important.  From  this  setting  he  contrives  by  choice  and 
placing  of  words  to  make  ideas  "stand  out,"  as  it  were,  so 
as  to  make  them  inviting  and  easy  to  grasp. 

Getting  the  information. — With  no  intention  of  present- 
ing directions  for  the  advertisement  writer,  but  rather  to 
give  to  others  who  are  not  so  engaged  a  general  idea  of  how 
this  work  is  done,  we  shall  follow  in  outline  the  making  of 
an  advertisement  in  a  large  store  from  the  time  of  its  in- 
ception to  the  time  when  the  results  are  all  in. 

In  the  preparation  of  an  advertisement  for  a  certain  day, 
the  advertising  man,  who  is  usually  called  the  "ad-man," 
first  confers  with  the  heads  of  departments  to  see  what 
goods  they  wish  to  advertise.  Their  offerings  may  be  the 
results  of  over-buying,  or  may  consist  of  "stickers"  that  are 
hard  to  sell,  or  they  may  be  the  latest  additions  of  new  stock. 
The  buyer  gives  to  the  ad-man  a  statement  concerning  the 
qualities  of  the  goods,  and  then  names  a  price  that  he  thinks 
will  move  them.  In  some  large  stores  these  reports  from 
buyers  are  made  to  the  ad-man  in  writing ;  the  reports  give 
the  name  of  the  goods,  cost,  regular  selling  price,  price 
at  which  they  are  to  be  advertised,  and  remarks  upon  selling 

248 


RETAIL   ADVERTISING 

points  to  be  emphasized  in  the  advertisement.  These  re- 
ports are  then  submitted  to  the  merchandise  manager,  who, 
together  with  the  ad-man,  plans  in  a  general  way  what 
shall  receive  most  and  what  secondary  attention  in  the  ad- 
vertisement. The  amount  of  space  and  possible  location 
of  the  advertisement  are  also  settled. 

Preparation  of  copy. — This  done,  the  ad-man  hurries  to 
his  office  with  his  handful  of  data  from  the  buyers,  and  his 
general  plan  in  his  head.  The  policy  of  the  store  and  its 
plans  for  this  particular  day  he  is  already  supposed  to  know. 
With  this  general  knowledge  and  plan  he  settles  down  and 
first  works  out  a  model  sheet  of  the  size  the  advertisement  is 
to  be,  showing  the  location  of  the  heading,  the  introduction, 
the  name  of  the  store,  the  descriptive  matter  of  the  offerings 
from  each  department,  and  the  illustrations.  This  model 
outline  is  called  the  "layout."  Next,  he  studies  his  offerings, 
or  the  material  describing  them,  sent  to  him  by  the  buyers ; 
and  from  this  he  writes  descriptions.  These  descriptions, 
called  "copy,"  must  be  carefully  written  so  as  to  express 
the  right  ideas,  and  must  be  of  right  length  to  fit  the  spaces 
or  "boxes"  assigned  to  each.  Usually  each  description  is 
written  on  a  separate  sheet  and  numbered  to  correspond  with 
a  number  placed  in  one  of  the  spaces  ruled  off  in  the 
"layout." 

When  the  material  is  ready,  the  ad-man  indicates  in  the 
margin  of  the  layout  the  size  of  the  space  the  advertisement 
is  to  occupy,  the  kind  of  border  it  should  have,  and  other 
instructions  for  the  printer;  while  on  the  sheets  containing 
the  descriptive  matter  he  indicates  the  size  and  style  of  type 
in  which  he  desires  the  article  to  be  set  up.  The  layout  with 
attached  copy  and  cuts  or  matrices  for  illustrations  is  then 
sent  to  the  printer  ,with  directions  to  "set  up,  follow  copy, 
and  return  proof  for  corrections."  In  due  course  of  time,  a 
"proof  sheet"  returns,  this  being  a  first  imprint  taken  of 
the  advertisement  as  it  appears  set  in  type.  Numerous  er- 

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RETAIL   SELLING   AND    STORE    MANAGEMENT 

rors  may  occur  in  the  process  of  setting  up.  All  of  these 
must  be  noted  and  corrected ;  this  is  called  "proof-reading." 
After  the  corrections  have  been  made,  the  "proof  sheet"  is 
returned  to  the  printer  with  full  instructions  to  correct  and 
then  to  send  a  new  imprint,  called  a  "revise"  for  final 
"O.  K." 

When  the  "revise"  arrives,  it  is  again  examined  for  any 
errors  that  might  have  been  overlooked  in  the  first  proof- 
reading, and,  if  found  correct,  it  is  marked  "O.  K."  and 
signed  by  the  ad-man,  who  returns  it  to  the  printer  with 
directions  to  run  off  a  sufficient  number  of  proof  sheets 
in  advance  to  supply  one  for  each  department  in  the  store, 
so  that  all  salesmen  may  be  prepared  to  co-operate  with  the 
advertisement.  Card-writers  are  set  at  work  preparing  nec- 
essary cards  for  the  day.  The  floorwalkers  see  that  these 
are  all  properly  placed  and  the  goods  displayed,  and  the 
salespeople  prepare  themselves  by  studying  prices  and  other 
points  regarding  the  goods  advertised. 

The  sale. — Then  the  advertisement  appears  in  the  news- 
paper. A  half  day  later  the  business  commences.  Curious, 
interested,  decided,  and  other  classes  of  customers  enter  the 
doors.  The  cheerful  floorwalkers  meet  them  and  direct  them 
to  the  departments  they  seek  frequently  with  wise  introduc- 
tions to  the  salespeople,  such  as  "Kindly  show  this  lady 
some  of  your  new  dress  silks,"  or  "This  gentleman  wishes 
to  get  a  good,  warm,  serviceable  coat,"  etc.;  and  the  sale? 
begins. 

The  results. — At  the  close  of  the  day  each  department 
head,  or  the  accounting  department,  figures  up  the  sales  and 
amount  of  money  taken  in.  The  reports  from  the  various 
departments  reach  the  manager  in  summary  form  next 
morning,  and  there,  down  in  black  and  white,  is  the  statement 
in  dollars  and  cents  of  the  success  of  the  advertising.  If 
the  advertising  was  well  done,  and  the  conditions,  such  as 
weather,  roads,  crops,  and  industrial  situation,  were  good, 

250 


RETAIL   ADVERTISING 

it  is  likely  that  the  results  were  satisfactory.  If  they  were 
not  satisfactory,  there  is  more  than  an  even  chance  that  the 
ad-man  may  have  some  disagreeable  moments  with  the  man- 
ager. 

Store  co-operation. — But  in  order  that  advertising  should 
succeed,  even  if  outside  conditions  are  at  their  best,  there 
must  be  perfect  co-operation  within  the  store.  The  salesmen 
must  be  ready  to  follow  up  the  advertising  in  the  department 
in  which  the  goods  advertised  are  located.  The  salesmen 
of  other  departments  should  also  be  informed  of  the  sale 
so  that  they  can  direct  the  inquiring  customers  without  hesi- 
tation to  the  right  part  of  the  store.  There  is  another  form 
of  co-operation  that  is  necessary :  salesmen  should  utilize,  so 
far  as  possible,  the  visit  of  the  customer  by  trying  to  in- 
terest him  in  other  goods  besides  the  ones  he  asks  for.  The 
advertised  goods  may  yield  but  small  profit.  The  regular 
lines  of  goods  must  be  relied  upon  to  supply  the  profit  for 
the  day.  Here  is  where  personal  salesmanship  works  as  ad- 
vertising never  can,  for  each  individual  customer  must  be 
treated  in  an  individual  way.  If  there  are  large  crowds 
of  insistent  purchasers,  it  may  be  difficult  to  guide  the  cus- 
tomer before  you  to  further  purchases,  but  skillful  sales- 
people train  themselves  in  doing  this  very  effectively.  Under 
such  circumstances  the  real  salesman  never  loses  his  head. 
He  uses  the  excitement  of  the  crowd  as  a  lever  in  selling 
more  goods,  but  he  always  adheres  to  the  principle  that  it  is 
wise  to  sell  to  a  person  only  such  articles  as  he  knows  will 
satisfy  the  customer.  He  serves  the  patrons  of  the  store 
always,  but  his  service  is  selling  goods.  The  salesman  not 
only  uses  the  advertising,  therefore,  but  he  carries  it  much 
further  in  effect  than  ink  on  paper  possibly  could.  He  aids 
the  future  advertising  of  the  store.  It  is  a  well-known 
principle  that  satisfied  customers  are  the  best  advertisement. 
The  ones  who  will  come  back  again  and  again  for  more 
goods  and  who  will  tell  other  people  of  their  satisfaction 

251 


RETAIL    SELLING   AND    STORE    MANAGEMENT 

are  the  retail  store's  best  assets.  Advertising  of  that  kind 
ranks  100  per  cent.,  and  it  is  the  result  of  right  salesmanship. 
The  advertising  profession. — Advertising  is  a  profession 
which  is  rapidly  growing  and  which  offers  splendid  oppor- 
tunities for  salesmen  who  have  the  ability  to  write  good 
copy.  For  retail  advertising,  a  training  in  selling  behind  the 
counter  is  almost  absolutely  essential.  To  this  there  must  be 
added  such  education  as  to  give  the  advertisement  writer 
broad  business  views,  literary  and  artistic  skill,  and  broad 
knowledge  of  and  sympathy  with  human  nature.  The  tech- 
nical part  of  ad-writing  may  be  learned  by  anyone  with  the 
proper  inclination  and  ability.  It  is  the  general  education 
that  is  most  essential  and  that  takes  the  longest  time  to  ac- 
quire. The  ad-man  needs  to  be  a  student  of  affairs,  of  art, 
and  of  psychology.  He  should  be  alive  to  every  social  move- 
ment and  change,  quick  to  see  and  to  judge.  All  successful 
ad-writers  are  great  readers.  All  borrow  ideas  from 
everywhere — from  history,  art,  literature,  and  from  one 
another.  Many  of  them  own  extensive  libraries,  the  volumes 
of  which  are  worn  with  constant  reading.  The  typical  ad- 
man is  well-educated,  well-read,  practical,  optimistic,  sympa- 
thetic, open-minded,  enthusiastic,  and  a  keen  judge  of  hu- 
man nature.  Young  men  and  women  in  the  retail  selling 
field,  if  of  the  right  temperament,  can  with  proper  prepara- 
tion be  successful  in  advertising.  The  necessary  preparation 
is  a  matter  of  time  and  work.  A  very  essential  part  of  it  is 
to  be  gained  while  studying  the  ins  and  outs  of  selling  be- 
hind the  counter. 


CHAPTER   XIX 
RETAIL  CREDITS  AND  COLLECTIONS 

Is  retail  credit  necessary? — From  the  standpoint  of  so- 
cial welfare  there  is  a  question  as  to  whether  credit  granting 
to  consumers  is  a  necessary  and  real  service  or  not.  Those 
who  oppose  the  practice  insist  that  there  are  so  many  dis- 
advantages and  evils  growing  out  of  it  in  retail  trade  that 
everything  possible  should  be  done  to  change  to  a  cash 
basis. 

There  is  reason  for  the  granting  of  credit  to  the  pro- 
ducers— the  manufacturers  and  the  wholesalers — for  they 
do  not  destroy  the  value  of  the  goods.  They  add  to  the 
value  by  one  form  of  service  or  another.  Hence  their  cred- 
itors can  be  repaid  from  the  proceeds  of  the  sale  of  the 
goods. 

Not  so  with  the  ultimate  consumer.  What  he  obtains,  he 
uses,  and  that  is  the  end  of  it.  If  he  eats  food,  wears 
clothes,  or  runs  a  pleasure  car  on  credit,  he  is  eating,  wear- 
ing, or  using  articles  for  which  he  has  given  no  return.  The 
payment  is  promised  in  the  future ;  but  in  the  meantime  his 
consumption  goes  on ;  and  his  earnings  are  often  behind  his 
consumption.  When  hard  times  or  bad  luck  comes,  there 
is  but  one  consequence.  He  simply  cannot  meet  his  obli- 
gations, and  the  retailer  must  shoulder  the  loss. 

In  other  words,  the  retailer  is  called  upon  to  support  cer- 
tain people — to  supply  them  with  the  necessities  of  life  to 
the  amount  of  several  dollars  on  every  thousand  dollars' 

253 


RETAIL    SELLING   AND    STORE    MANAGEMENT 

worth  of  business.  This  loss  must  be  met  directly  by  the 
retailer,  but  he  in  turn  tries  to  pass  it  on  to  others.  He 
cannot  pass  it  on  to  the  wholesalers  unless  he  actually  fails. 

Though  it  is  not  always  possible,  the  logical  place  for 
seeking  reimbursement  is  from  the  public.  A  merchant  may 
compute  that  he  will  lose,  we  shall  say,  two  cents  on  every 
dollar's  worth  of  goods  sold  on  credit.  He  must  simply  add 
two  cents  to  the  selling  price  of  every  dollar's  worth  so  that 
this  loss  may  be  covered.  Hence  it  will  be  seen  that  the 
people,  particularly  the  classes  who  always  pay  their  bills, 
are  taxed  by  the  stores  for  the  payment  of  the  bad  debts. 
If  cash  selling  prevailed,  goods  could  be  sold  with  equal 
profit  to  the  merchant  for  as  much  less  as  the  bad  accounts 
now  amount  to,  plus  the  additional  office  expense  necessary 
to  run  a  credit  business  in  a  store. 

Inevitable  loss, — It  may  be  added  that  it  is  practically 
impossible  to  do  a  credit  business  without  some  loss.  Busi- 
ness conditions,  crops,  accidents,  and  other  factors  will 
cause  these  losses  to  vary  from  year  to  year.  By  expert 
credit  management,  losses  can  be  materially  reduced ;  but  no 
one  has  a  method  of  doing  a  credit  business  without  any 
losses. 

Credit  a  cause  of  recklessness. — Credit  is  a  cause  of  reck- 
lessness in  business  management  both  in  the  store  and  among 
its  customers.  The  store  finds  it  easy  to  sell  its  goods  on 
credit,  and  sometimes  plunges  into  questionable  selling  cam- 
paigns in  the  false  hope  of  getting  pay  in  the  future.  Cus- 
tomers are  led  to  invest  their  money,  often  unwisely,  when 
it  should  be  used  to  pay  for  daily  necessities.  Credit  tempts 
most  customers  to  extravagance,  and  from  this  there  is  only 
a  step  to  dishonesty  and  ruin.  It  is  noteworthy  that  ex- 
perience with  credit  and  collection  systems  makes  moral 
weaklings  callous  to  demands  for  just  payments.  Young 
people  growing  up  in  families  where  purchases  are  con- 
stantly made  on  a  credit  basis  sometimes  cannot  or  do  not 

254 


RETAIL   CREDITS   AND    COLLECTIONS 

learn  the  value  of  money,  nor  do  they  gain  habits  of  thrift 
and  saving. 

Arguments  for  retail  credits. — These  are  the  arguments 
against  retail  credit,  but  it  must  not  be  assumed  that  there 
are  no  arguments  for  it.  On  the  contrary,  the  strongest 
arguments,  according  to  many  merchants,  are  those  favor- 
ing credit  business.  In  the  first  place,  they  say,  people  are 
accustomed  to  receiving  credit.  The  merchant  is  not  a 
social  reformer.  It  is  his  business  to  serve  the  people  in 
the  way  they  want  to  be  served.  Many  customers  do  not 
want  to  be  troubled  with  making  cash  payments  for  every- 
thing they  buy  and  at  the  time  of  buying.  By  not  requiring 
immediate  cash  payments,  considerable  time  is  saved  to  the 
customer  that  would  otherwise  be  wasted  in  counting  out 
money  and  waiting  for  change.  Many  customers  much  pre- 
fer to  have  bills  rendered  once  a  month  or  so,  so  that  they 
can  make  payments  with  checks  or  large  bills.  Some  people 
find  it  easier  to  keep  track  of  their  expenses  by  following 
this  method. 

Credit  until  pay  day. — Again,  there  are  great  numbers  of 
people  who  do  not  live  beyond  their  means,  but  who  receive 
their  wages  at  the  end  of  various  periods  of  time,  as  for 
example,  every  two  weeks,  or  every  month.  These  people 
have  to  wait  for  their  pay.  Why  should  not  the  merchant 
wait  for  his  pay  for  goods  sold  to  them?  This  is,  undoubt- 
edly, one  of  the  safest  classes  to  trust,  for,  when  they  are 
working,  they  are  storing  up  the  value  of  their  work  which 
will  become  available  on  pay  day. 

Credit  business  pays. — It  may  be  argued  that,  at  present, 
a  credit  store  attracts  trade.  Credit  giving  is  a  policy  that 
appeals  to  many  people.  Unfortunately,  it  appeals  to  un- 
desirables as  well  as  those  who  are  "good  pay."  But  it  is 
a  fact,  nevertheless,  that  in  many,  if  not  most,  communities 
a  store  doing  a  credit  business  will  draw  a  much  larger  trade 
than  one  operating  on  a  strictly  cash  basis.  This  increase 


RETAIL   SELLING   AND    STORE    MANAGEMENT 

in  volume  of  trade,  when  credits  are  rightly  handled,  more 
than  compensates  for  the  time,  trouble,  and  money  loss  at- 
tending the  credit  business.  In  some  places,  no  other  policy 
could  succeed.  If  there  is  any  tendency,  however,  in  the 
matter,  it  seems  to  be  in  the  direction  of  the  increasing  pop- 
ularity of  a  cash  business. 

Credit  makes  good  customers. — Finally,  a  credit  business 
pays  because  it  makes  good  customers.  Those  who  buy  for 
cash  buy  wherever  they  may  be,  and  go  from  place  to  place 
in  response  to  curiosity  or  attention  aroused  by  the  adver- 
tising of  bargains.  The  credit  customer  usually  gives  his 
entire  trade  in  a  given  line  to  one  store.  If  he  does  not,  a 
little  pressure  properly  applied  can  often  induce  him  to 
do  so. 

Substitutes  for  credit. — As  substitutes  for  the  credit  sys- 
tem, aimed  at  changing  the  habits  of  trading  of  a  community, 
some  stores  offer  a  discount  ranging  from  two  to  five  cents 
on  the  dollar  for  cash.  This  encourages  cash  payment  effec- 
tively in  some  lines,  but  has  had  but  little  effect  in  others. 
Another  common  device,  partly  successful,  is  the  sale  of  trade 
coupons  for  cash — the  giving  of  $10.50  value  in  coupons 
for  $10.00  in  cash,  or  $2.50  in  premiums  for  $100  worth 
of  cash  trading  stamps.  This  discount  is  effective  in  draw- 
ing the  cash  trade  of  certain  classes,  but  usually  these  are 
the  classes  that  always  pay  anyway.  It  seems  to  take  more 
than  this  to  bring  out  cash  in  advance  from  bad  risks. 
Some  large  stores  have  established  store  banks  for  the  use 
of  their  customers,  and  these  institutions  are  said  to  be  very 
successful.  Customers  make  their  purchases,  and  the 
amounts  are  subtracted  from  their  total  deposits,  and  inter- 
est at  four  per  cent,  is  paid  upon  daily  balances. 

Practical  necessity  for  credit. — Whatever  the  theory  of 
retail  credits,  the  fact  remains  that  as  conditions  now  are, 
many  successful  businesses  will  continue  to  be  founded  on 
the  credit  granting  policy.  It  is  perfectly  clear  that  credit 

256 


RETAIL   CREDITS   AND    COLLECTIONS 

granting  is  still  considered  a  proper  function  for  the  majority 
of  retail  stores,  and,  that  being  the  case,  it  remains  for  the 
retail  merchant  to  study  the  problems  and  methods  of  credit 
giving  in  a  thorough  manner. 

Essentials  of  successful  credit  business. — Success  in  a 
credit  business  depends  upon  a  careful  study  of  local  busi- 
ness conditions,  careful  selection  of  risks,  thorough  examina- 
tion of  credit  information,  constant  supervision  of  accounts, 
prompt  collecton  service,  and  ingenuity  in  laying  plans  for 
the  collection  of  recognized  bad  accounts.  This  demands 
that  the  credits  of  a  business  must  be  presided  over  by  one 
of  the  ablest  men  in  the  store,  and,  if  the  business  is  large, 
his  whole  time  needs  to  be  given  to  the  work.  He  should 
be,  in  fact,  a  specialist,  a  credit  man.  His  office  should  be 
close  to  the  bookkeeping  department,  and  all  purposes  are 
best  served  by  having  the  bookkeepers  under  his  direction 
and  supervision.  He  should  also  have  complete  charge  of 
the  collecting  of  accounts,  since  "getting  the  money"  is  the 
logical  and  desired  end  of  the  store's  credit  activities.  In 
stores  where  the  credits  and  other  office  work  do  not  take 
up  the  entire  time  of  a  good  man,  it  is  probably  best  to 
have  what  work  there  is  of  this  nature  delegated  to  one  man. 
Its  importance  is  such  that  some  responsible  member  of  the 
concern  should  be  in  charge.  To  give  the  work  to  one  man 
and  to  hold  him  responsible  is  by  all  means  the  best  plan. 
Bad  credit  risks  are  a  rock  upon  which  a  large  proportion 
of  retail  concerns  are  wrecked.  Live  responsibility  is  what 
is  needed  to  keep  the  business  from  getting  too  near  the 
danger  line. 

Relation  of  business  conditions  to  credit  granting. — 
The  business  conditions  of  a  community  determine  in  a  gen- 
eral way  the  prospects  of  safety  in  granting  credit.  A  com- 
munity may  be  on  the  up-grade,  down-grade,  or  stand- 
ing still  commercially  and  financially.  To  grant  exten- 
sive credits  in  a  down-grade  period  in  any  community  is  to 

257 


RETAIL    SELLING    AND    STORE    MANAGEMENT 

court  failure.  Crops  are  always  important  factors  in  every 
business,  but  more  especially  in  a  community  in  which  agri- 
culture is  the  immediate  and  greatest  industry.  Good  crop 
prospects  are  sufficient  reasons  for  liberal  credit  policies, 
whereas  bad  crops  mean  decreased  means  of  meeting  debts. 
In  prosperous  communities,  however,  it  may  be  possible  for 
most  of  the  best  farmers  to  tide  over  a  period  of  years  quite 
successfully. 

The  condition  of  a  community's  resources,  whether  plenti- 
ful or  near  exhaustion,  is  also  an  important  point  worthy  of 
investigation.  A  community  facing  sudden  change  or  in- 
dustrial depression  offers  bad  prospects  for  receiving  prompt 
returns  on  credit  extended.  Many  a  town  has  found  itself 
stranded  for  a  time,  at  least,  by  the  exhaustion  of  its  natu- 
ral resources,  the  failure  of  one  of  its  principal  industries, 
or  slackening  in  the  demand  for  the  product  of  the  main 
industry.  All  of  these  things  tend  to  make  it  difficult  to  pay 
debts.  Periods  of  general  industrial  depression  are  always 
productive  of  difficulty  in  making  collections. 

In  addition  to  uncovering  such  industrial  facts  as  have 
been  already  referred  to,  a  study  of  a  community  also  will  be 
valuable  in  order  to  determine  the  character  of  the  people 
themselves  with  respect  to  their  honesty  and  willingness  to 
pay.  "Dead  beats"  have  a  bad  psychological  effect  on  their 
neighbors,  unless  promptly  checked  in  their  activities.  If 
one,  or  several,  can  run  accounts  and  then  never  pay  them, 
others  reach  the  conclusion  that  the  scheme  is  worth  trying. 
But  most  people  will  pay  if  they  can.  It  rests  with  a  wise 
merchant  to  prevent  them  from  making  purchases  that  they 
cannot  pay  for,  not  only  for  his  good,  but  also  for  their 
good  as  well. 

Classes  that  may  receive  credit. — In  general  there  are 
certain  lines  which  a  credit  man  may  draw  between  those 
to  whom  credit  should  be  granted  and  those  who  should  not 
receive  this  service.  In  the  first  place,  people  with  means, 

258 


RETAIL  CREDITS  AND  COLLECTIONS 

but  whose  means  are  not  immediately  available,  may  gen- 
erally be  trusted.  The  farmer  who  is  waiting  for  his  crop 
to  ripen  or  for  better  market  conditions;  the  lumberman 
who  is  waiting  for  the  spring  thaw  to  move  his  logs;  the 
ice-dealer  who  waits  for  hot  weather  to  bring  him  a  mar- 
ket; the  contractor  who  is  completing  a  job  for  which  he 
will  be  paid  at  its  close;  the  manufacturer  whose  product 
requires  much  time  and  capital  expense  before  it  is  ready 
for  the  market — these  are  classes  that  often  need  and  may 
safely  receive  credit  under  average  conditions.  To  these 
may  be  added  the  great  class  of  salaried  or  wage-earning 
workers  who  have  pay  days  two  weeks  or  a  month  apart. 
Credit  up  to  a  certain  limit  and  for  the  time  extending  to 
the  next  pay  day  is  usually  considered  safe,  especially  if 
the  worker  is  the  head  of  a  family,  and  better  still  if  he  is  a 
home  owner. 

Who  should  not  receive  credit. — On  the  other  hand,  peo- 
ple of  extravagant  habits,  those  who  are  incompetent  or 
idle,  intemperate,  or  unable  to  attend  to  their  businesses, 
and  those  who  tend  to  live  beyond-  their  means  should  not 
receive  credit.  Men  without  families,  minors,  married 
women  who  are  not  legally  responsible  for  their  obligations, 
strangers  without  a  record,  speculators,  and  gamblers  are 
usually  considered  bad  risks  by  conservative  and  successful 
business  men.  Credit  should  not  be  granted  to  people  in  ill 
health  when  death  is  likely  to  occur,  and  when  death,  if  it 
should  occur,  would  mean  loss.  Nor  should  people  past 
fifty  years  of  age  who  have  made  no  savings  or  have  no 
habits  of  thrift  or  accumulation,  or  those  who  live  from 
hand  to  mouth  receive  commercial  credit.  Lest  this  may 
seem  a  cold-blooded  analysis,  it  should  be  said  that  the 
community  owes  to  both  the  infirm  and  to  the  old,  insur- 
ance against  privation.  But  this  burden  should  not  fall  on 
the  retail  merchant  alone.  A  merchant  should  be  charitable ; 
he  can  afford  to  be.  But  charity  is  not  business.  When  goods 

259 


RETAIL    SELLING   AND    STORE    MANAGEMENT 

are  given  to  unfortunate  people,  and  the  hope  of  payment 
is  slight,  the  goods  should  be  charged  to  charity  and  not 
to  business. 

The  credit  man's  problems. — Having  these  general  prin- 
ciples in  mind,  the  credit  man  is  called  upon  to  make  ap- 
plications of  the  principles  to  the  hundreds  of  specific  cases 
that  come  up.  As  a  first  consideration,  he  must  decide  which 
the  firm  can  least  afford  to  lose,  the  value  of  the  goods  if  the 
debtor  never  pays,  or  the  customer's  trade  if  he  should  hap- 
pen to  be  entirely  safe.  If  the  dealer  refuses  the  credit, 
it  is  entirely  likely  that  the  customer  will  transfer  his  trade 
elsewhere.  The  store  wants  to  hold  all  trade  that  is  good, 
and  increase  its  volume  if  possible.  It  may  prove  profitable 
for  a  store  to  be  liberal  in  granting  credit  even  if  this  pol- 
icy results  in  losing  a  few  more  debts  than  usual.  The 
increased  volume  in  business  may  more  than  cover  the  losses. 
This,  then,  is  the  policy  of  many  credit  granting  stores;  to 
grant  credit  rather  freely,  to  anticipate  a  certain  percentage 
of  loss,  and  then  maintain  an  effective  collection  department 
for  the  purpose  of  keeping  the  losses  below  the  anticipated 
percentage  mark. 

How  bad  debts  arise. — Credit  men  generally  work  on 
the  principle  that  it  is  usually  safe  to  trust  a  customer  at 
least  once  if  he  belongs  to  one  of  the  approved  classes. 
Trouble  may  arise,  however,  after  credit  has  been  granted 
once.  The  customer  comes  in  and  asks  for  credit  "until 
Saturday,"  "until  the  first  of  the  month,"  or  "until  I  have 
sold  my  wheat."  The  date  of  payment  is  indefinite;  col- 
lections are  not  promptly  demanded.  Probably  partial  pay- 
ments enter  into  the  account,  and  then  the  credit  risk  be- 
gins to  slide  along.  After  various  lengths  of  time,  the 
debtor  has  some  bad  luck,  such  as  illness  or  lack  of  work, 
and  the  merchant  is  left  in  a  hole ;  he  cannot  get  his  money, 
and  if  he  complains  at  any  time,  the  customer  may  leave 
him  for  good.  Finally,  loss  must  be  acknowledged. 

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RETAIL   CREDITS   AND   COLLECTIONS 

The  work  of  the  credit  man. — To  avoid  cases  of  this 
kind,  the  credit  man  gets  complete  information  about  the 
customer  from  the  customer  himself  and  from  others.  He 
induces  the  customer  to  fix  a  definite  date  of  payment.  He 
finds  out  on  what  day  the  customer  expects  income;  and 
bills  or  statements  are  promptly  rendered  at  that  time.  For 
most  retail  businesses  dealing  in  the  necessities  of  life — 
food  and  clothes — especially  in  cities,  thirty  days  should  be 
about  the  limit  of  credit.  In  some  places  the  credit  limit 
is  two  weeks,  and  in  others  only  a  week.  The  credit  man 
slso  fixes  a  credit  limit  for  each  customer,  beyond  which  the 
salesman  cannot  sell  without  proper  authorization. 

If  a  bill  does  not  bring  prompt  response,  there  follows  a 
vigorous  campaign  of  letters.  Failing  in  getting  returns 
by  these  methods,  these  letters  are  followed  up  by  a  per- 
sonal call  from  a  collector  for  the  store. 

At  this  point  the  credit  man  and  his  assistant  collectors 
begin  to  use  all  sorts  of  ingenious  devices  to  keep  from 
losing  the  amount.  If  the  cash  is  not  obtainable,  some  deal 
or  trade  is  proposed  whereby  the  customer  can  make  a  quick 
settlement.  As  a  last  resort,  the  account  goes  into  the  hands 
of  a  collection  attorney.  Up  to  this  point  the  store  uses 
every  tactful  means ;  but  when  the  attorney  attacks  the  job, 
it  means  war.  No  further  trade  is  expected — or  wanted — 
from  the  customer.  The  debt  must  be  collected  by  force  if 
possible. 

Method  of  handling  the  credit  customer. — The  methods 
of  a  credit  man  in  dealing  with  an  applicant  for  credit  can 
te  made  clear  by  illustration.  A  customer  purchases  some 
articles  from  a  salesman  and  asks  to  have  it  charged. 

Salesman:  "Have  you  a  charge  account  with  us?" 

Customer:  "No." 

Salesman:  "Wait  just  a  minute  to  meet  our  credit  man, 
please,"  or  "Please  come  to  the  office  with  me  and  arrange 
the  details." 

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RETAIL   SELLING   AND    STORE    MANAGEMENT 

The  customer  must  be  handled  very  carefully.  Most 
women  know  little  about  the  requirements  and  necessities 
of  the  business  world.  A  rough,  brusque  procedure  in  get- 
ting credit  information  might  incense  a  woman  to  such  an 
extent  that  she  would  go  to  another  store.  She  must  be 
kept  entirely  at  ease,  and  yet  the  information  must  be  ob- 
tained. 

Getting  credit  information  from  customer. — When  the 
credit  man  meets  the  customer,  he  learns  as  much  about 
her  as  possible  without  arousing  antagonism  on  her  part. 
What  he  is  after,  and  what  he  usually  gets  from  a  customer 
who  shows  no  hesitancy  in  replying,  can  be  made  most 
clear  by  a  study  of  a  card  or  other  blank  form  such  as  he 
may  fill  out  for  his  own  information.  A  card  form  of  this 
sort  is  as  follows. 


Name  

Married  or  single  .  .  . 

Address    

Former  address  

Occupation  

Where  employed  .... 

Address  of  employer 

or 

Business  address  .... 

Husband's  business  address  

Where  statement  is  to 

be  sent  

Date    

Verification. — After  the  credit  man  has  the  information 
he  wants  from  the  customer,  and  after  he  has  had  an 
opportunity  to  pass  judgment  based  upon  appearances,  he 
may  still  want  further  information  or  verification.  He  con- 

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RETAIL  CREDITS  AND  COLLECTIONS 

suits  the  directory,  Dun's  or  Bradstreet's  commercial  re- 
ports if  the  prospective  customer  is  in  business,  and  pos- 
sibly other  sources.  This  takes  but  a  moment  of  time  in 
well  regulated  offices.  At  its  close,  if  the  investigation 
shows  that  the  risk  may  be  undertaken,  he  returns  to  the 
customer  with  a  tactful  remark,  such  as  "It  is  all  right.  We 
know  you  and  are  glad  to  have  your  account."  If,  on  the 
other  hand,  the  investigation  results  unfavorably,  he  refuses 
the  credit  in  a  courteous  manner,  and  probably  shows  him- 
self sympathetic,  but  blames  the  rules  of  the  house  for  his 
inability  to  be  of  service. 

Thorough  investigation. — After  this  preliminary  investi- 
gation is  made,  there  may  be  more  to  follow.  The  credit 
man  learns  essential  facts  about  the  customer's  family  con- 
nections. For,  no  matter  how  hard  the  circumstances  may 
be  that  surround  a  family,  if  there  is  a  characteristic  pride 
in  square  dealing  handed  down  from  the  preceding  genera- 
tion, it  is  almost  certain  that  any  obligation  will  be  faith- 
fully kept  to  the  letter.  From  the  customer's  employer,  the 
credit  man  may  learn  particulars  concerning  the  wages, 
steadiness,  and  reliability  of  the  customer,  or  of  the  bread- 
winner of  the  family.  From  the  assessor's  office  he  may 
learn  whether  the  customer  owns  or  rents  the  home  lived 
in;  and,  if  he  rents,  who  the  landlord  is.  From  the  land- 
lord the  credit  man  finds  out  if  the  rent  is  usually  paid 
on  time.  Friendly  merchants  can  tell  him  what  experiences 
they  have  had  with  the  customer,  if  any.  Local  credit  asso- 
ciations can  be  of  very  effective  service  as  a  means  of  verifi- 
cation of  facts  otherwise  determined,  or  as  a  guide  to  special 
investigations. 

What  the  credit  man  should  know  about  his  risks. — 
When  the  credit  man  is  through  with  his  investigation  con- 
cerning a  debtor,  he  knows  not  only  the  facts  shown  on  the 
card,  but  also  the  salary  received,  reputation  for  paying, 
personal  habits,  steadiness  in  holding  position,  what  rent  is 

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RETAIL    SELLING   AND    STORE    MANAGEMENT 

paid,  or  whether  home  is  all  paid  for,  and  all  about  any 
sources  of  income  other  than  regular  salary  or  wage  for  the 
city  dweller.  For  his  country  customers,  he  learns  what 
property  the  debtor  owns,  what  incumbrances  there  are  on 
the  property,  the  customer's  character,  his  methods  of  mar- 
keting his  crops,  the  condition  of  his  farm,  his  care  of 
implements,  the  condition  of  his  live  stock,  and  his  special- 
ties in  farming. 

Credit  records. — This  information  is  often  carried  in  the 
mind  of  the  small  town  merchant;  but  lapses  of  memory 
are  so  common  that  the  written  record  that  the  professional 
credit  man  employs  is  preferable  for  all  but  the  smallest 
businesses.  The  credit  man's  records  are  kept  strictly  pri- 
vate. Surely  the  customer  should  never  know  the  detailed 
opinion  of  his  reliability  that  the  credit  man  holds.  After 
the  records  are  complete,  even  if  all  looks  well,  safety  in  a 
credit  business  can  be  assured  only  by  eternal  vigilance  and 
thorough  watchfulness  of  general  business  tendencies, 
changes  in  the  prospects  of  each  debtor,  and  careful  super- 
vision of  the  ledger  accounts.  Any  slowness  or  failure 
to  meet  obligations  at  the  appointed  time  should  be  noted  at 
once.  Any  system  established  in  the  bookkeeping  depart- 
ment must  aim  at  efficiency  in  this  regard.  Even  under  the 
best  conditions  a  good  credit  man  with  a  good  system  can 
hope  only  to  keep  the  percentage  of  total  losses  below  a  cer- 
tain point;  he  cannot  eliminate  them  entirely. 

Relation  of  credit  to  prosperity. — Granting  retail  cred- 
its is  a  matter  of  vital  importance  to  the  whole  country. 
For  example,  it  can  be  shown  that  retail  credits  had  some 
share  in  causing  the  financial  crises  of  1837,  1857,  1873,  and 
possibly  1893.  Laxness  in  credits  leads  to  trouble,  not  only 
for  the  retailer,  but  also  for  the  wholesaler,  manufacturer, 
banker,  and,  consequently,  for  the  public  in  general.  A 
business  granting  credit  should  carefully  estimate  what 
amount  it  can  safely  grant  in  total,  and  beyond  which  it 

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RETAIL   CREDITS   AND   COLLECTIONS 

should  not  go.  A  house  doing  a  credit  business  needs  to 
estimate  carefully  what  effects  its  credit  granting  will  have 
on  its  cash  business,  and  the  tendencies  to  gravitate  either 
in  one  direction  or  the  other.  The  proportion  of  cash  to 
credit  sales  needs  to  be  carefully  watched.  Finally,  in  accord 
with  our  theory  of  retail  selling  and  consumption,  it  would 
seem  best  that  every  step  possible  should  be  taken  toward 
establishing  cash  buying  as  a  habit  of  the  public.  Many 
a  house  finds  its  credits  leaping  ahead  of  its  cash  sales  be- 
cause of  failure  to  do  this.  Salespeople  can  help  by  sug- 
gesting the  cash  payment  rather  than  saying  at  the  close 
of  the  sale,  "Shall  we  charge  this?" 


CHAPTER   XX 

RELATION  OF  THE  STORE  TO  ITS  SALESPEOPLE 
AND  TO  THE  PUBLIC 

Relation  to  employes. — In  a  previous  chapter  we  have 
discussed  the  relation  of  the  employe  to  his  employer.  It 
was  pointed  out  that  when  a  salesman  is  engaged  by 
a  store,  the  store  has  a  right  to  expect  certain  services  and 
a  certain  attitude  of  good-will  towards  the  business  as  well 
as  a  given  number  of  hours  during  which  the  regular  work 
is  to  be  performed.  The  merchant  has  a  right  to  demand 
these  things  of  the  salesman.  But  there  is  another  side  to 
the  contract.  The  merchant  owes  salespeople  not  merely 
the  wages  or  salary  which  he  has  agreed  to  pay,  but  also 
favorable  conditions  under  which  the  work  is  to  be  per- 
formed. Salespeople  are  not  machines,  and  cannot  be  treated 
as  such.  They  need  the  human  interest  of  the  employer, 
and,  therefore,  it  is  a  part  of  his  duty  to  look  after  their 
welfare  and  to  provide  them  with  steady  work  so  far 
as  possible,  to  make  regular  promotions  whenever  they  are 
deserved,  and  to  insure  to  the  employe  who  has  worked 
faithfully  for  him  for  many  years  that  he  will  not  be  in- 
considerately cast  off  in  his  old  age.  This  policy,  it  is  com- 
ing to  be  seen,  will  pay  in  the  long  run. 

Minimum  salary. — The  minimum  salary  that  any  eco- 
nomic employment  should  pay  should  not  be  less  than 
enough  to  buy  the  simple  necessities  of  life  for  the  person 
receiving  it.  Competition  among  wage  earners  for  places 
makes  it  unnecessary  in  many  cases  in  retail  stores  for  the 

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STORE,  SALESPEOPLE  AND  PUBLIC 

employer  to  pay  this  much ;  the  competition  among  employ- 
ers forces  each  to  take  advantage  of  the  necessities  of  the 
laborer.  It  is  difficult  to  see  how  these  circumstances  can 
be  remedied,  but  so  far  as  the  individual  business  is  con- 
cerned, it  would  seem  a  profitable  policy,  as  a  matter  of 
good  advertising  if  for  no  other  reason,  to  employ  no  people 
at  wages  below  the  living  standard. 

Child  workers. — The  age  of  the  worker  as  well  as  his  ex- 
perience, education,  and  native  ability  count  for  much  in 
determining  what  salary  shall  be  paid,  but  it  does  not  appear 
that  any  permanent  good  can  come  from  employing  any 
person  under  the  age  of  sixteen  years  in  retail  stores. 
Since  the  days  when  store  apprenticeships  were  common, 
young  people  have  not  been  able  to  learn  much  from  per- 
forming the  tasks  that  can  now  be  given  to  those  under 
sixteen ;  hence,  one  cannot  say  that  there  is  any  educational 
value  for  the  boy  or  girl  in  serving  in  a  store  before  this 
age,  and  many  good  business  men  agree  that  in  most  cir- 
cumstances, it  is  more  profitable  to  employ  older  people,  all 
things  considered,  than  young  children.  Neither  the  child 
laborers  nor  the  employer  of  child  labor  receives  permanent 
benefit  from  the  employment  of  children. 

What  should  determine  salary? — The  amount  of  salary 
that  a  salesman  should  receive  should  depend  upon  his  earn- 
ing ability,  his  total  sales,  or  his  total  profits  for  the  firm. 
In  most  businesses,  the  salaries  are  understood  to  be  a  cer- 
tain percentage  of  the  total  sales  and  range  anywhere  from 
three  to  ten  per  cent,  or  even  higher.  In  general  merchan- 
dise, drygoods,  or  grocery  stores,  the  average  lies  some- 
where between  four  and  seven  per  cent,  of  the  total  sales. 
If  we  were  to  assume  that  the  salaries  should  equal  four 
per  cent,  of  the  sales,  then  a  salesman  who  sold  $250  worth 
of  goods  in  a  week  would  be  entitled  to  four  per  cent,  of 
that  amount,  or  $10.  If  the  sales  were  greater  than  $250 
per  week,  then  the  salesman  would  be  earning  more 

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RETAIL   SELLING   AND    STORE    MANAGEMENT 

money  for  the  house  and  would  be  entitled  to  a  higher 
wage. 

An  ideal  way  to  pay  for  selling  services  would  be  upon 
a  commission  basis.  In  this  case  each  salesman  would  get 
an  income  exactly  corresponding  to  his  efforts;  but  in  a 
store  where  there  are  several  salespeople  and  several  depart- 
ments to  be  considered,  it  has  been  found  impracticable  in 
most  cases  to  pay  salespeople  upon  a  commission  plan,  be- 
cause when  this  is  done  there  is  likely  to  be  lack  of  harmony 
among  the  departments,  instead  of  the  co-operative  working 
together  which  the  store  should  encourage.  When  it  is  not 
possible  to  pay  on  the  commission  basis,  a  straight  salary 
is  the  alternative  most  generally  considered. 

But  a  straight  salary  does  not  bring  out  the  best  ability 
of  the  salespeople.  The  salesman  may  understand  that  his 
salary  is  dependent  upon  his  earning  power  in  the  long  run, 
and  yet  he  may  neglect  to  improve  his  opportunities  because 
the  weekly  or  monthly  amount  payable  to  him  seems  so  se- 
cure. As  a  result,  many  do  not  get  into  the  habit  of  doing 
their  best  even  for  themselves,  and  both  the  salesman  and 
the  house  lose  that  efficiency  that  the  salesman  is  capable  of 
developing.  Some  form  of  premium  for  good  work  should 
be  offered  to  the  salesman,  and  the  offer  should  be  made  in 
such  a  way  that  there  can  be  no  misunderstanding  or  un- 
certainty about  its  being  paid  to  all  those  who  make  good 
and  not  to  those  who  fail.  The  form  of  this  premium  may 
be  a  cash  bonus  on  all  sales  above  a  certain  amount,  a  pay- 
ment for  valuable  suggestions,  or  a  bonus  for  excellent  team 
work  or  co-operation  with  the  store. 

Premiums. — In  some  stores  there  is  a  custom  of  allowing 
salesmen  premiums  for  selling  any  stock  which  seems  to 
have  developed  "sticking  qualities."  Such  premiums  have 
been  known  for  a  long  time  as  "spiffs"  or  "P.  M's."  The 
effect  of  such  a  premium  is  that  the  salesman  gives  special 
attention  to  pushing  the  lines  in  which  the  premiums  are 

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STORE,  SALESPEOPLE  AND  PUBLIC 

offered  and  the  goods  are  sold  quickly  as  has  been  suggested. 
However,  the  advantages  of  paying  premiums  are  question- 
able. The  salesman  gives  an  unnecessarily  large  amount  of 
attention  to  selling  the  special  stock,  neglecting  to  make  sales 
among  the  goods  that  may  pay  the  highest  profits  to  the 
house.  In  the  second  place,  salesmen  are  sometimes  likely 
to  push  special,  "spiffed"  goods  when  the  customers  might 
be  better  satisfied  with  other  lines  of  goods ;  the  house  may 
lose  some  of  its  trade  by  reason  of  this  practice. 

In  recent  discussions  upon  the  matter  of  premium  giv- 
ing, there  has  been  a  strong  tendency  to  emphasize  the  nec- 
essity of  giving  premiums  for  efficiency  in  making  sales  in 
all  lines,  whether  the  most  popular  goods  or  not,  and  that 
the  premium  should  be  based  on  special  effort,  ability,  or 
results.  The  premium  should  be  paid  to  the  man  who  does 
more  than  the  common  everyday  duties  which  every  sales- 
man must  perform  if  he  is  to  keep  his  position.  The  house 
must  have  complete  the  co-operation  and  good-will  of  its  em- 
ployes. The  remuneration  that  is  paid  to  the  salesman  is, 
after  all,  the  chief  means  of  getting  this  good-will.  The 
payment  of  premiums  of  some  kind  adds  to  the  interest  or 
zest  of  the  salesman. 

Profit-sharing. — There  are  other  methods  besides  premi- 
ums by  which  the  co-operation  of  every  employe  may  be 
obtained  for  the  business.  Profit-sharing  in  one  form  or 
another  is  common  and  effective,  if  properly  carried  out.  If 
the  employe  knows  that  his  income  is  to  a  certain  extent 
dependent  upon  the  success  of  the  business,  the  average  per- 
son will  help  to  make  that  business  more  successful.  There 
are  some  who,  even  under  this  stimulus,  do  not  respond,  be- 
cause immediate  desires  or  pleasures  seem  much  more  im- 
portant to  them  than  a  return  some  months  hence.  Profit- 
sharing  is  most  effective  as  a  means  of  getting  co-operation 
among  employes  who  own  homes  and  desire  to  make  the  best 
use  of  their  position  for  themselves  and  their  families. 

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RETAIL    SELLING   AND    STORE    MANAGEMENT 

It  is  least  effective  among  those  employes  who  work  only  for 
a  season  in  a  store  and  who  do  not  know  whether  they 
care  to  continue  in  that  line  of  work  or  in  some  other. 
Profit-sharing  is  generally  most  effective  in  the  business 
in  which  there  is  a  division  of  the  profits  frequently,  say 
every  six  months  rather  than  every  year.  It  is  easier  to 
look  ahead  for  this  shorter  period  of  time  than  for  a 
whole  year. 

There  are  dozens  of  different  plans  of  profit-sharing,  but 
perhaps  the  most  usual  is  that  in  which  the  firm  distributes 
all  of  its  net  earnings  in  excess  of  a  fair  return  for  the 
capital  invested  and  for  the  hazards  of  the  business.  Some- 
times this  distribution  is  based  upon  the  time  of  the  services 
of  the  employe ;  that  is,  an  employe  who  has  been  at  work 
for  the  firm  for  a  long  time  gets  a  larger  share  of  the  profits 
than  one  who  has  been  employed  only  a  short  time.  In  fact, 
it  is  customary  for  no  profits  to  be  paid  to  an  employe  who 
has  not  been  connected  with  the  firm  at  least  one  year.  In 
other  cases  the  profits  are  distributed  on  the  basis  of  the 
amount  of  salary  received  by  the  employes,  the  higher  sal- 
aried ones  getting  a  higher  percentage  of  profit,  and  the 
lower  salaried  ones  a  smaller  percentage.  In  still  other 
stores,  both  of  these  plans  are  combined  so  that  those  who 
have  been  in  service  a  long  time  and  who  are  receiving  the 
higher  salaries  get  the  larger  parts  of  the  profits  to  be 
distributed. 

Special  forms  of  profit-sharing. — There  are  some  forms 
of  profit-sharing  which  do  not  go  by  that  name,  but  which 
are  effective  in  getting  the  employes'  co-operation.  Among 
them  is  the  offering  of  the  company's  stock  so  that  any  em- 
ploye may  have  the  opportunity  of  becoming  a  stockholder 
in  the  business.  When  he  begins  to  feel  that  he  is  a  part 
of  the  business,  he  will  do  his  level  best  to  make  the  business 
successful. 

Christmas  gifts,  Thanksgiving  turkeys,  and  presents  at 

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STORE,  SALESPEOPLE  AND  PUBLIC 

other  times  are  other  means  of  getting  co-operation.  The 
managers  show  their  appreciation  of  the  efforts  of  the  sales- 
men by  these  tokens,  and  the  salesmen  become  keen  in  the 
desire  to  outdo  their  former  records  and  merit  further  con- 
sideration. Such  presents  are,  in  many  cases,  valuable  in 
that  they  cement  the  feeling  of  interest  between  employer 
and  employes  and  show  to  the  latter  that  the  employer  is 
interested  in  their  welfare. 

There  are  dangers  in  present  giving,  however,  and  one  of 
these  is  that  the  practice  may  be  looked  upon  as  a  habit,  and 
the  Thanksgiving  turkey  considered  a  part  of  the  regular 
salary.  Wherever  this  danger  exists,  it  would  be  better  for 
the  practice  to  be  dropped,  and  for  any  funds  expended  for 
such  presents  to  be  added  to  the  salaries  of  the  employes  in 
the  proportion  that  they  deserve. 

Selling  goods  to  salesmen — Another  way  in  which  sales- 
men receive  remuneration  indirectly  from  the  stores  in  which 
they  are  employed  is  the  privilege  of  purchasing  goods  at 
lower  figures  than  are  offered  to  the  public.  Most  stores 
grant  a  discount  to  salespeople,  ranging  commonly  from  five 
to  ten  per  cent,  off  from  the  selling  price.  This  discount  is 
usually  accorded  to  the  salesman  only  for  the  purpose  of 
supplying  his  own  needs.  Purchases  for  his  family  or 
friends  are  to  be  made  at  the  usual  store  prices.  As  a  gen- 
eral rule,  salespeople  are  supposed  to  do  their  buying  in 
the  store  only  at  certain  hours  during  the  day.  It  is  also 
generally  best  to  have  some  other  salesman  wait  on  the  clerk 
instead  of  having  him  wait  on  himself.  This  means  a  square 
deal  to  all  concerned. 

In  some  stores,  clerks  are  allowed  to  purchase  goods  at 
cost  to  the  store,  including  the  price  paid  for  the  goods,  the 
freight,  the  expense  of  marking,  etc.,  and  the  placing  of  the 
goods  on  the  shelves.  In  many  grocery  stores  there  are  no 
discounts  allowed  whatsoever.  In  stores  where  salespeople 
are  required  to  wear  uniforms,  and  where  material  for  the 

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RETAIL    SELLING   AND    STORE    MANAGEMENT 

uniforms  is  on  sale,  the  salespeople  are  usually  given  any- 
where from  ten  to  twenty  per  cent,  off  on  this  class  of 
goods. 

Discounts,  gifts,  tokens,  etc.,  may  be  considered  by  the 
management  as  part  of  the  selling  expense  wherever  they  are 
given.  Hence  it  is  only  a  question  of  whether  a  store  finds 
it  more  convenient  to  pay  the  salespeople  in  direct  salary 
what  they  think  is  due  them  and  what  will  bring  the  best 
results,  or  to  pay  a  smaller  salary  and  add  thereto  these 
special  returns  in  various  indirect  forms. 

Security  of  employment. — Security  of  employment  is  an- 
other thing  that  directly  affects  the  quality  of  the  services 
that  salesmen  give  to  the  store.  If  a  person  knows  that  his 
position  is  reasonably  secure  and  that  he  need  not  worry 
about  finding  another  job,  he  is  more  efficient  because  he 
can  give  his  complete  thoughts  to  the  business  of  selling. 
It  is  well  known  that  the  seasonal  occupations  that  employ 
people  for  only  short  periods  of  time,  have  a  lower  labor 
efficiency  than  any  other  kind  of  work.  It  is  not  to  be  ex- 
pected that  a  different  result  can  be  obtained  from  salesmen 
who  would  like  to  do  their  best  but  who  do  not  know 
whether  they  will  have  their  present  positions  next  month 
or  not. 

Promotions. — Promotions  when  made  from  the  ranks 
within  the  store  help  create  a  strong  sentiment  of  good-will 
among  salespeople  in  most  cases.  It  is  sometimes  felt  neces- 
sary to  bring  in  "new  blood"  from  time  to  time  in  the  higher 
positions ;  but  wherever  possible  promotions  should  be  made 
from  the  ranks.  "Of  what  use  is  it,"  so  most  salesmen  think, 
"to  give  extra  effort  and  service  to  the  store  if  that  effort 
will  not  be  recognized  and  if  some  outsider  is  brought  in 
to  take  the  position  up  above?" 

Value  of  departmentizing. — Every  store  where  there  are 
several  employes  would  find  it  profitable  to  departmentize,  if 
for  no  other  reason  than  to  give  definite  work  and  responsi- 

272 


STORE,  SALESPEOPLE  AND  PUBLIC 

bilities  to  the  various  work  people.  In  a  general  store  in 
which  the  manager  is  the  only  recognized  managing  official, 
it  is  difficult  for  the  average  salesman  to  see  that  he  is 
making  any  forward  progress  as  the  years  pass  by.  But  in 
a  departmentized  store  where  the  salesmen  may  climb  from 
a  selling  position  into  that  of  an  assistant  buyer  or  a  buyer, 
or  any  other  position  of  responsibility  within  the  store  or- 
ganization, there  is  an  incentive  to  improve  constantly.  One 
may  think  that  labels  and  names  do  not  amount  to  much, 
but,  after  all,  most  of  us  take  pleasure  in  one  form  of  dis- 
tinction or  another  and  the  distinction  of  holding  an  official 
position  of  definite  responsibility  in  a  retail  store,  even 
though  it  be  a  small  one,  is  well  worth  having. 

Every  manager  should  have  an  under-study. — One  plan 
that  a  store  can  well  afford  to  carry  out  is  to  provide  a  sys- 
tem of  under-studies  for  every  important  position  in  the 
management.  There  are  three  reasons  for  this.  In  the  first 
place,  the  work  of  the  manager  in  charge  of  any  department 
is  made  easier  because  of  the  help  that  he  derives  from  his 
under-study.  Secondly,  the  under-study  system  provides  a 
definite  line  along  which  an  employe  can  plan  to  progress, 
and,  when  a  person  begins  to  plan  for  the  future  in  this  way, 
it  means  that  he  is  taking  a  deep  interest  in  his  work.  This 
is  one  of  the  most  desirable  features  of  the  under-study  sys- 
tem. Thirdly,  the  under-study  learns  to  do  the  work  of  his 
chief  and,  therefore,  if,  for  any  reason,  the  latter  should  be 
absent  or  should  leave  for  some  other  position,  the  store 
would  not  be  handicapped  in  getting  a  new  man  to  take  his 
place.  New  men  from  outside  of  the  business  must,  of 
necessity,  consume  time  in  learning  any  store's  system.  This 
time  expenditure  is  a  loss  to  the  firm.  There  should,  there- 
fore, be  under-studies  for  the  various  buying  positions,  for 
the  accounting  and  credit  departments,  and  for  all  other  im- 
portant official  places  in  the  store. 

Salesmen's  suggestions. — There  is  one  other  method  of 

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RETAIL   SELLING   AND   STORE   MANAGEMENT 

getting  the  co-operation  of  the  employes  in  a  store,  and  that 
is  by  conducting  some  sort  of  system  that  will  encourage 
salesmen  to  make  suggestions  upon  any  point  which  will  be 
of  benefit  to  the  business.  Not  only  is  the  store  benefited 
by  the  closer  co-operation  of  the  salespeople  by  this  plan, 
but  many  good  ideas  may  be  obtained  and  utilized,  which 
will  mean  an  increase  in  the  profits  of  the  business. 

Welfare  work. — An  employer  needs  to  be  interested  in 
the  welfare  of  his  employes,  not  only  during  the  hours  of 
work,  but  at  all  other  times  as  well.  How  this  interest 
shall  be  shown  is  a  problem,  for  unless  the  matter  is  handled 
in  a  wise  and  diplomatic  manner,  all  steps  in  a  welfare  direc- 
tion may  be  misunderstood  by  the  salespeople.  Many  mer- 
chants have  helped  their  salesmen  by  taking  steps  to  pro- 
vide the  means  for  them  to  enjoy  themselves  during  hours 
out  of  service.  A  few  large  stores  have  summer  camps 
where  the  employes  may  spend  their  vacations.  Some  stores 
encourage  athletics  among  both  men  and  women  during 
spare  times.  Annual  picnics  are  a  big  feature  in  many 
stores.  Other  forms  of  welfare  work  are  valuable,  as,  for 
example,  the  establishment  of  savings  and  loan  associations, 
of  sick,  accident,  and  death  benefits,  etc. 

There  are  a  number  of  things  which  every  merchant  can 
do  for  his  people  which  will  help  them  during  the  hours 
when  they  are  in  his  business  place.  He  can  and  should 
provide  them  with  as  easy  conditions  for  work  as  possible, 
such  as  proper  ventilation,  heat,  and  lighting.  It  has  been 
found  by  careful  experiment  that  salespeople  can  make  more 
sales  in  a  store  that  is  well  ventilated,  other  conditions  being 
about  the  same,  than  in  one  poorly  ventilated,  and  with  less 
effort,  too.  The  same  is  true  of  heating  and  lighting.  It 
has  been  found  that  chairs  behind  the  counters  are  not  an 
inconvenience  or  temptation  to  indolence;  for  a  moment's 
rest  while  sitting  down,  enables  the  salesman  to  double  his 
energy  in  the  next  sale,  and,  therefore  selling  efficiency  is 

274 


STORE,  SALESPEOPLE  AND  PUBLIC 

increased.  Some  stores  have  set  aside  and  equipped  some 
room  to  be  used  as  a  rest  room  for  any  employe  who  does 
not  feel  entirely  well.  In  stores  where  a  number  of  the 
employes  bring  their  lunches,  a  comfortable  lunch  room 
can  often  be  set  aside  for  the  use  of  those  needing  it, 
while  in  some  large  stores  lunches  are  prepared  and  sold 
to  the  employes  at  low  cost.  Large  stores  can  go  much 
further  in  this  welfare  work,  as  it  is  called,  than  small 
stores;  but  even  in  a  small  store,  the  management  can 
watch  the  details  of  the  work  of  the  store  and  its  effect 
upon  the  salespeople  carefully,  and  improve  anything  that 
does  not  seem  to  work  well.  Everything  that  makes  the 
salespeople  more  truly  healthy,  clear-minded,  and  happy, 
helps  to  make  them  better  salespeople,  and  some  large  cor- 
porations have  adopted  welfare  work  solely  for  the  profit 
that  they  expect  to  derive  therefrom. 

Hours  of  labor. — The  hours  of  labor  in  a  retail  store 
are  sometimes  too  long,  although  the  tendency  has  been 
to  cut  them  down.  It  is  not  long  since  most  stores  kept 
open  every  evening  in  many  parts  of  the  country.  From 
that,  the  stores  progressed  to  a  point  where  they  kept  open 
only  two  evenings  a  week;  and,  now,  in  the  majority  of 
larger  places,  Saturday  evening  is  the  only  night  open  in  the 
retail  trade.  This  tendency  is  in  the  right  direction.  Very 
few  salesmen  can  do  their  very  best  and  be  on  duty  65  to 
80  hours  a  week.  The  tendency  toward  early  closing  is 
increasing,  and  progressive  merchants  will  do  well  to  push 
along  the  movement  for  weekly  half  holidays  and  shorter 
hours  for  all. 

Education  of  salespeople. — Finally,  there  is  the  education 
of  the  salespeople  to  be  considered.  In  these  days  when 
business  pressure  is  great,  we  are  likely  to  forget  that  the 
salesman  behind  the  counter,  especially  the  young  man  or 
woman,  has  neither  the  outlook  that  will  allow  him  to  adopt 
the  best  means  to  progress  in  his  work,  nor  the  opportunity 

275 


RETAIL    SELLING   AND    STORE    MANAGEMENT 

to  do  so.  Many  of  the  best  merchants  agree  that  any  store 
system  is  incomplete  unless  provision  is  made  for  the  train- 
ing of  the  employes.  The  business  manager  owes  it  to  his 
employes  to  teach  them  something  of  the  broader  aspects  of 
the  business  and  to  give  them  a  chance  to  grow  in  it.  Mer- 
chants often  complain  that  salespeople  do  not  seem  to  be 
able  to  describe  goods  or  to  give  the  proper  assistance  to 
customers.  The  merchant  should  not  forget  that  his  views 
and  methods  of  selling  are  the  results  of  years  of  experience 
and  of  a  broad  outlook  on  business  life,  neither  of  which 
the  average  salesman  has. 

The  buyer  as  a  teacher. — Buyers  bring  in  splendid  assort- 
ments of  goods  which  will,  in  their  estimation,  sell  well; 
then  sometimes  salesmen  fail  tc  sell  these  goods.  The 
reason  often  is  that  the  buyer  has  seen  the  goods  demon- 
strated by  expert  salesmen  representing  the  manufacturers ; 
he  has  seen  the  goods  in  the  best  possible  light ;  and  he  has 
heard  the  most  telling  points  about  them;  while  the  sales- 
man behind  the  counter  has  been  at  home  and  has  heard 
nothing  and  seen  nothing  of  the  goods  before  they  were 
placed  in  stock.  This  condition  can  be  remedied  by  making 
it  a  definite  part  of  the  buyer's  work  to  instruct  the  sales- 
people carefully  in  the  qualities  of  the  goods  they  are  to  sell. 
It  rests  with  the  buyer  to  inspire  the  salespeople  of  his  de- 
partment so  that  they  may  see  the  beauty,  the  value,  and 
the  usefulness  of  every  article  as  he  sees  them.  In  other 
words,  the  buyer  should  sell  the  goods  to  the  salespeople 
before  the  salespeople  can  be  expected  to  sell  the  goods  to 
the  customer. 

Store  conferences. — In  the  teaching  of  general  store  man- 
agement and  selling  methods,  a  great  deal  of  good  can  be 
done  by  the  holding  of  frequent  conferences  or  meetings 
among  the  salespeople  at  which  topics  of  interest  to  the  sales- 
people can  be  brought  up  for  discussion.  At  these  meetings 
all  sides  could  be  represented  and  heard.  Classes  in  sales- 

276 


STORE,  SALESPEOPLE  AND  PUBLIC 

manship  are  of  a  great  value.  The  store  rule  book  could 
be  made  a  textbook  of  great  helpfulness  to  salespeople  if 
properly  written  and  its  study  emphasized.  When  buyers 
make  their  trips  to  the  market,  they  sometimes  pick  up  a 
number  of  valuable  ideas  for  the  store.  Each  buying  trip 
should  be  of  educational  value.  Whenever  possible,  the 
store  should  send  assistant  buyers  and  salesmen  along  with 
the  buyer  so  that  they  may  also  gain  some  of  the  help  that 
comes  to  every  man  that  travels  with  his  eyes  open.  These 
trips  could  be  made  of  value,  not  only  to  the  salesmen 
who  take  them,  but  also  to  the  rest  of  the  salesmen,  by  re- 
quiring the  ones  who  have  taken  the  trip  to  make  a  report 
to  the  entire  group.  Educational  trips  could  be  offered  to 
the  salespeople  as  a  form  of  premium  for  efficient  service. 
They  should  be  a  means  of  increasing  results  in  any  retail 
store. 

The  trade  papers. —  There  is  another  means  of  education 
for  salespeople,  which  should  not  be  neglected,  and  which 
has  grown  in  importance  with  .every  year.  We  refer  to 
the  trade  papers  and  magazines  and  the  books  written 
on  business  subjects.  There  is  now  no  general  retail  busi- 
ness without  its  trade  papers.  These  vary  in  quality  and 
usefulness  to  the  store  employes,  but,  on  the  whole,  they 
present  the  facts  and  suggestions  which  no  good  progressive 
salesman  can  afford  to  be  without.  That  some  of  the 
material  in  these  trade  papers  is  addressed  to  the  managers 
and  higher  officials  of  the  store  will  not  do  the  salesman 
a  bit  of  harm ;  for  it  is  the  salesman's  failure  to  understand 
the  problems  of  the  man  up  above  that  is  often  the  reason 
for  his  being  inefficient.  Modern  business  is  moving  swiftly 
and  there  are  conditions  which  must  be  grappled  with  almost 
at  the  moment  that  they  appear,  or  failure  will  result.  There 
is  nothing  so  well  fitted  and  so  able  to  furnish  knowledge 
of  these  things  as  the  trade  papers.  Every  store  should  be 
a  subscriber  to  the  papers  that  deal  with  its  special  needs, 

277 


RETAIL    SELLING   AND    STORE    MANAGEMENT 

and  every  retail  salesman  should  be  a  constant  reader  of  as 
many  of  these  trade  papers  as  possible. 

Relations  of  merchant  to  society. — The  store  manager 
has  a  certain  duty  not  only  to  his  customers  but  also  to  so- 
ciety as  a  whole.  The  store  is  a  social  institution.  It  sup- 
plies the  people  with  their  daily  needs.  The  store  that 
serves  the  people  best  succeeds  the  best.  Unjust  and  un- 
social practices  in  business  in  the  past  have  made  it  neces- 
sary that  there  should  be  certain  rules  with  regard  to  the 
conduct  of  business.  So  we  have  a  law  of  sales,  a  law  of 
contracts,  a  law  of  bankruptcy,  laws  of  measures  and 
weights,  pure  food  laws,  etc.  The  tendency  seems  to  be  for 
these  rules  concerning  business  to  increase  in  number.  The 
merchant  should  recognize  the  tendency  and  stand  for  it 
rather  than  against  it.  The  public  is  not  blind.  Good-will 
is  the  result  of  good  service  to  the  public.  It  is  a  notable 
fact  that  "pure  food  law"  stores,  well  advertised  as  such, 
everywhere  in  this  country  are  meeting  with  success.  Pure 
food,  pure  water,  pure  air,  and  cleanliness  form  the  central 
ideas  in  a  rapidly  growing  social  ideal.  The  grocer  who 
is  a  little  ahead  of  the  absolute  requirements  of  the  law  in 
supplying  his  people  with  what  they  consider  best,  succeeds 
the  best  in  the  long  run.  It  is  not  unlikely  that  we  shall  have 
"pure  fur  laws,"  "pure  silk  laws,"  and  "pure  wool  laws"  in 
the  future.  There  is  a  growing  desire  among  the  people 
to  know  what  they  are  eating,  wearing,  or  using,  what  it 
is  made  of,  how  it  is  made,  and  its  essential  qualities.  The 
day  of  imitation  has  not  yet  passed,  by  any  means,  nor  is  it 
likely  that  it  will  pass.  But  there  is  certainly  an  increasing 
number  of  people  who  prefer  to  buy  from  a  firm  that  sells 
silk  and  cotton  mixed  foulard  for  what  it  is,  rather  than  the 
same  thing  under  the  name  of  pure  silk.  If  furniture  is 
veneered,  they  want  to  know  it.  If  woolen  goods  are  not  all 
wool,  they  want  to  know  that.  If  oleomargarine  is  colored, 
they  want  to  know  that.  There  may  not  always  be  quite  so 


STORE,  SALESPEOPLE  AND  PUBLIC 

much  profit  in  selling  goods  under  this  policy  as  there  may 
be  in  selling  imitations  that  deceive  the  public.  But  busi- 
ness in  the  long  run  (and  after  all,  the  "long  run"  is  the 
only  thing  that  counts)  must  give  full  value  to  the  public. 

The  cost  of  living  is  undoubtedly  increasing.  Bradstreet's 
commercial  agency  reports  that  the  average  increase  on  all 
articles  used  by  the  ultimate  consumer  during  the  twelve 
months  ending  May  i,  1912,  was  something  over  ten  per 
cent.  For  the  last  fifteen  or  twenty  years,  there  has  been 
a  constant  upward  tendency  in  prices.  The  end  of  it  is  not 
yet  in  sight.  This  increase  in  the  cost  of  living  is  going  to 
hurt,  and  does  hurt,  the  merchants  as  much  as  it  hurts  any- 
one else.  Unjustly,  merchants  receive  some  share  of  the 
public  blame  for  this  increase.  The  merchant  would  serve 
the  public,  even  better  than  he  is  doing,  by  taking  a  leading 
position  in  showing  the  public  how  to  fight  this  increase  in 
the  cost  of  living.  There  are  many  ways  in  which  most 
merchants  could  show  the  people  how  to  save  their  money, 
how  to  make  their  money  go  further,  and  how  to  buy  to 
the  best  advantage.  These  things  would  be  really  beneficial 
and  would  in  no  way  hurt  the  retail  business. 

For  example,  a  plumbing  house  in  one  of  the  large  cities 
makes  it  a  point  to  show  customers  how  to  do  certain  things 
themselves,  like  making  small  repairs,  replacing  worn  parts, 
and  so  on,  and  thereby  save  the  expense  of  having  a  plumber 
come  to  their  houses  to  do  the  work.  The  same  principle 
is  applied  by  other  kinds  of  dealers.  But  some  merchants 
might  say,  "Why,  this  would  mean  cutting  down  our  own 
business !"  In  most  cases  this  would  not  really  be  the  re- 
sult. Plumbing  and  painting  jobs  which  are  done  by  the 
individuals  assisted  by  the  advice  of  the  dealers  would  prob- 
ably not  be  done  at  all  if  the  expense  of  getting  a  skilled 
workman  were  added  to  the  cost.  The  work  of  the  mer- 
chant in  these  cases  is  something  like  that  of  the  physician. 
A  good  physician,  even  though  he  draws  his  fees  only  for 

279 


RETAIL    SELLING   AND    STORE    MANAGEMENT 

his  services  during  the  time  his  patients  are  ill,  does  his  level 
best  to  get  them  well  as  soon  as  possible.  It  should  not  be 
true  of  retail  merchants  that  they  seek  to  continue  business 
practices  that  are  an  unnecessary  expense  to  the  public. 

The  retail  merchant  can  afford  to  be  frank  with  the  pub- 
lic. If  he  is  doing  a  square  business,  no  harm  can  come  from 
his  letting  people  know  just  what  the  conditions  are  under 
which  he  is  working.  To  take  a  single  example :  There  is  no 
other  business  man  who  gets  so  many  requests  for  donations 
as  a  retail  merchant.  He  gets  a  great  many  more  requests 
than  any  private  individual.  In  fact,  if  he  were  to  pay  do- 
nations out  of  his  own  pocket,  they  would  soon  put  him 
out  of  business.  So  he  usually  charges  the  donations  to  the 
expenses  of  the  business.  The  public  does  not  appar- 
ently understand  that  in  doing  so  he  simply  turns  the  ex- 
pense over  to  the  public.  It  would  do  no  harm  for  the 
public  to  know  that  donations  made  by  the  merchant  must 
be  made  by  the  business  rather  than  by  the  person.  It  would 
be  fairer  and  more  economical  to  have  the  public  pay  the 
items  directly  than  to  put  the  expense  of  collection  and  dis- 
tribution upon  retail  merchants;  yet  this  will  never  be  un- 
derstood unless  merchants  themselves  educate  the  public. 

(6) 


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